At the end of 2011 General Government Debt stood at €169bn or 108% of GDP and
131% of GNP.
In Chile at an EU-Latin America summi at the week-end, attended by Angela Merkel, German
Eamon Gilmore gave a warning that failure to strike a deal with the ECB on the
promissory note would have a “potentially catastrophic effect on Ireland.”
In Dublin, Leo Varadkar said the Coalition has to change some of its proposals
to avoid punitively high repayments on the promissory notes.
The next €3.1bn payment is due in March.
Angela Merkel likely viewed Gilmore's warning as
puzzling as the 'good pupil' seemed to be heading for the sunlit uplands until
Now, an IMF backstop maybe needed or participation in
the ECB's new OMT bond-buying on return to the markets, never mind a cut in the debt burden.
“It’s not an issue of being in the markets, it’s
an issue of at what price,” Noonan told Bloomberg News in Davos last week.
“We don’t want to go back into the market and fall back out of it again.”
Michael Noonan sang to a different tune in London
in Dec 2011 when he said he was targeting “full re-entry” to the bond market by
“My key message to you is that we want to
move out of the European Union-International Monetary Fund program and return to
the markets at the earliest opportunity,” Noonan said.
“I intend that Ireland will give Europe its first success story as the
recessionary cycle moves back in the right direction.”
“I would stress that there is no question
whatsoever about our sovereign signature,” he said.
“Our recovery is export-led, and on the back of
increases in export levels of 6.3% in 2010 and an estimated 4.6% increase in
2011, exports are at record levels. The pharmaceuticals, software, financial
services, business services and food sectors all performing especially well.”
The policy makers back in Europe will likely put
Gilmore’s sudden desperation down to jet lag.
What next? Mario Draghi, ECB president, to be dismissed as a clerk!
Gilmore had to learn that Jean-Claude Trichet, ECB president in 2011, was more than a
“mere civil servant” as he said when he foolishly promoted the slogan: "Labour's way or Frankfurt's way."
Irish Times, Jan 02, 2013:
Mr Gilmore believes the recession will
have ended by 2014 and that the political and
economic landscape will alter radically.
“We believe that we are now at a stage where
we can start looking forward. We have been mired in economic recession. As
we move into 2013, we will be able to look beyond that crisis.
“My parting words to the parliamentary party
was when we come back in 2013 we will need to be talking and thinking about
what post-recession Ireland will look like. I see enormous potential.
The EU presidency absolutely parallels what we are doing, concentrating on
jobs and growth and trade,” he said.
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