Homeowners who want to move house but
are afraid of losing their low interest tracker mortgages will be offered a
lifeline by two major banks. A tracker is a mortgage linked to the currently low
rate set by the European Central Bank.
THE wife of bust developer Sean Dunne is planning $154,000
(€120,000) worth of improvements to the basement of her new US mansion,
the Irish Independent can reveal.
Elan will still have $1.2 billion of cash left to spend
if shareholders approve its first package of acquisitions announced this
morning, chief executive Kelly Martin said.
Marks & Spencer has become the latest company to be embroiled in the UK controversy over tax practices following reports it uses an Irish subsidiary to bill European sales.
In a structure used only for overseas sales, the company’s UK warehouses sell goods to Marks & Spencer (Ireland) Ltd at wholesale prices, according to reports. The retailer dispatches online orders destined for mainland Europe from the UK but bills the transaction to Ireland, according to documents seen by the Guardian.
Talks on a revised public sector pay agreement at the Labour Relations Commission later today amid fresh doubts over the Government’s savings target.
Minister of State Brian Hayes has given the Government’s first public indication that it may not generate €300 million in savings on the public service pay and pensions bill this year under talks on a revision to the Croke Park II deal. He said yesterday that the key issue for the Government would be to secure €1 billion in savings by 2015.
He said the €300 million target was still an
ambition. However, some trade unions had advanced alternative proposals and he
said these may not deliver the full level of savings for this year, but could
produce them by 2014 or 2015.
Many of them will have just completed the paperwork involved in paying their property tax. It is the latest instalment in a five-year fiscal plan aimed at restoring the country’s solvency. Runaway lending by poorly regulated banks was a very significant contributory factor in our national bankruptcy. The bill for bailing them out currently stands somewhere north of €60 billion and unemployment is stuck above 14 per cent for reasons that are not unrelated.
Irish pensioners should consider the young before protesting over cuts to their retirement income or asking for further benefits, pension reformer Nick Sherry has said.
The former politician who ran Australia’s pension system said the younger generation was already weighed down with debt, and was bearing the brunt of the economic crisis, an effect being compounded by high emigration.
“People close to retirement who argue for greater benefits should remember there are fewer young people around to pay for them and they are putting a greater burden on them. It’s their kids and grandkids who will have to pay for the benefits or increased payments.
“There are so many young people emigrating from Ireland so there are fewer people around to pay when old people ask for more benefits.”
European pension plans continue to shift out of equities, despite rising equity markets across the globe during 2012 and 2013. However, Irish pension schemes are not following the trend, with allocation to equities steady at 44 per cent over the past 12 months, according to a new asset allocation survey from pensions consultant Mercer.
For Paul Kenny, senior investment consultant with Mercer, a combination of factors, such as a challenging and uncertain regulatory background and the challenge of generating positive returns, has meant that some Irish pension schemes have paused their “risk reducing journeys” over 2012. However, he warned that the risks of static high equity allocations for defined benefit pension schemes are “well understood” and long-term de-risking and diversification out of equities remain important objectives.
Ireland will be able to maintain its current corporation tax code
in the face of international pressure to prevent
multinational corporations avoid paying their fare share of tax, Minister for
Jobs, Enterprise and Innovation, Richard Bruton said yesterday.
The eurozone is heading towards a break up unless there are moves
towards much closer political and fiscal union,
according to chief economist with State Street Global Advisers, Chris Probyn.
From an economic perspective, the most positive outcome of the treaty negotiations (ratified in 1922) was that the Irish Free State acquired full fiscal autonomy from the UK thereafter.
But our new study of Irish economic history since independence has revealed that the economy performed very poorly in the inter war years relative to the British and European economies, despite vigorous attempts to encourage growth, initially through improving agricultural exports in the 1920s and subsequently through import substitution and protectionism.
The German Frankfurter Allgemeine Zeitung complained on Friday: "The base interest rate has been at a historic low of 0.5 percent since the beginning of May. This means an aggressive redistribution of wealth and income, the conservative daily Frankfurter Allgemeine Zeitung angrily comments: "Thanks to the ECB, savers are getting a yield of just half a percent. But even that is being eaten away by inflation, and on top of everything else rising prices are nibbling away at capital. ... The politicians and central banks are perfectly willing to accept this cold-blooded expropriation of the savers and life insurance policy holders because they want to help over-indebted states through the zero-interest policy. So while those who are putting away money to make provisions for their old age are forced to watch their promised pensions melt away like snow in the sun, debtor states are happily taking out new loans because the money is so cheap. ... In future the ECB will make sure that in the Eurozone money is redistributed from the creditors to the debtors."
Lidové noviny of the Czech Republic said: With his package of measures President Hollande is maneuvering himself into a corner, the conservative daily Lidové noviny writes: "With the exception of the elites in France and Southern Europe, no one shares Hollande's ideas. Most of these, particularly on the subject of euro bonds, stand in direct contrast to Germany's interests. This isn't about European ideals, but about a fierce political battle over whether Europe will be more German or more French. For the French this is dangerous, even if they manage to push through their ideas. Once they pushed for the introduction of the euro in return for Germany's reunification, in the hopes of curbing Berlin's economic strength. However the exact opposite was the result."
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