| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : EU Economy Last Updated: Feb 4, 2011 - 8:04 AM


Trichet tells Ireland: "Apply the plan"
By Finfacts Team
Feb 3, 2011 - 4:32 PM

Email this article
 Printer friendly page
European Central Bank President Jean-Claude Trichet at a press conference in Frankfurt, Feb 03, 2011.

"Apply the plan," European Central Bank President Jean-Claude Trichet told Ireland on Thursday, in response to questions at a press conference in Frankfurt, on Opposition party proposals in the general election campaign to renegotiate the EU-IMF bailout that was agreed last November.

"Our message to the Irish government is 'Apply the plan,'" Trichet said. "The plan comprehends a number of measures concerning the economy and reshaping of the banking sector. Our message remains: 'Apply the plan.'"

The EU-IMF bailout terms were agreed on Nov 28, 2010: European Union and bilateral European lenders, including the UK, Denmark and Sweden, have pledged a total of €45.0bn and Ireland will contribute €17.5bn from the National Pensions Reserve Fund and advance borrowing by the National Treasury Management Agency. The International Monetary Fund's (IMF) contribution will be about €22.5bn, representing 2,320% of Ireland's quota, under the Extended Fund Facility (EFF).

Trichet said the ECB refrains from getting involved in election campaigns but he noted that the plan, accepted by Ireland, was approved by the IMF, the EU and the international community in general. "And implementation of the plan is absolutely essential, in my opinion and in the opinion of the ECB, for the credibility of the country," he said.

Fine Gael has said it would renegotiate terms of the bailout deal, including the level of interest rate charged and restructuring of senior bank debt, while the Labour Party said it would also seek an extension of the 4-year €15bn fiscal adjustment plan that was agreed with the European Commission last November.

Trichet was asked what would be the response if the incoming government were to reject parts of the bailout agreement, he said: "no comment."

On the emergency liquidity assistance (ELA) to Eurozone banks, Trichet said the ECB plans to end some banks' "addiction" to it and Irish banks account for about 25% of the outstanding advances. "We are looking at it as far as it has an impact on the functioning of our own monetary policy," he said.

The ECB president was asked about separate financial support being provided by the Central Bank of Ireland to Irish banks.

Trichet said central banks retain that power but the ECB is monitoring its use.

He stressed the need for countries to stick to reform plans.

"We have always a very strong message for all countries in Europe, without any exception, on the necessity to be absolutely credible on fiscal consolidation," he said. "We consider that fiscal consolidation is not contradictory with the consolidation of the recovery and with job creation, because consolidation brings about increased confidence, and confidence is the ingredient that is most missing in most of the countries."

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

EU Economy
Latest Headlines
Spain's strong recovery to slow in the next few years
Italy's Mezzogiorno is Achilles' heel of Euro Area - lowest birth rate since 1862
Euro Area GDP grows at weak 0.3% in Q2 2015
German GDP up 0.4% in Q2 2015; France's GDP stagnates
Germany's Surplus: Lots of critics; Credible solutions scarce
Euro Area industrial production dips in June and May after a flat April
Greece faces two years of recession according to EU officials
High EU youth unemployment rate not as bad as it seems
Eurozone retail PMI surges to highest since January 2011
ECB monetary policy still tight for Southern Europe
German exports fell in June — surplus at record; Exports up 13.7% year-on-year
Eurozone manufacturing sector continued to expand in July
Weak euro unlikely to have significant impact on Euro Area growth
Is Euro Area Ireland's top trading partner?: EU28 is overwhelmingly UK's
German car firms boost exports from Spain, UK, Portugal, Czech Republic, Slovakia, Hungary and Romania
Flash Eurozone manufacturing/ services PMI close to four-year high despite Greek crisis
Krugman calls euro a Roach Motel; Hotel California gets 1-star grade
Greece & Euro Crisis: July 2015 articles from Finfacts
Greece and other poor countries in Euro Area will not become rich
Euro Area manufacturing/ services PMI hits four-year high in June
Western European car market: Recovery continues
Greece could become a failed state like Venezuela
Multinational companies pay on average 30% less tax than domestic competitors in EU
EU's list of 30 tax havens omits the biggest 4 in Europe
China to invest in Juncker's European investment fund
Greek talks collapse; Game theorists gambling with future — Germany's vice-chancellor
German exports and industrial production in strong rises in April
Tackling Inequality: Scandinavian countries have the most successful welfare systems in Europe
Eurozone unemployment fell by 130,000 in April 2015 — down 849,000 in 12 months
Eurozone service sector business activity slowed during May
German 2015 GDP forecast cut; Jobless level at 24-year low
Eurozone manufacturing in modest acceleration in May
FDI into Europe at record in 2014; UK on top: Germany location for future investment
Eurozone economy loses growth momentum; Jobs growth rises
Athens leak suggests Juncker has plan for Greece
Draghi will not end QE early but warns of risks
Eurozone grows faster than US and UK in Q1 2015
German GDP at slower pace, France faster in Q1 2015
Germany may cut income tax; Germans still shun risky investments
Germany had record exports and imports in March 2015