Published on 24 Mar 2011

In video: Euro bailout negotiations

Euro bailout negotiations in video. Sometimes moving picture speaks more than 10,000 words. Watch the new Irish Taioseach Enda Kenny search out President Sarkozy like a heat-seeking missile after the leader’s photo at today’s European Council summit in Brussels. There have been marked tensions between France and Ireland over an attempt to force Ireland to raise its low corporation tax rate, in exchange for a less punitive rate of interest on Ireland’s bailout loan. And then a classic on camera moment, a consolatory hug from G, for P, as P, I and G line up in that order.

READ MORE: Portugal’s PM exits after austerity plan rejected

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4 reader comments

  1. Saltaire Sam says:

    Faisal, can we have an investigation into the Osborne-Cable claims that if we don’t cut as deeply and rapidly as plan A, we will be in the same situation as Portugal, Ireland and Greece?

    From listening to details of Portugal’s situation, it seems very different to me. They have huge payments to make over the next few months that they cannot make without borrowing. As far as I remember, much of the UK’s repayments are due some years down the road, giving us time reduce the deficit more slowly.

    And anyway the economies of P, I & G are very different from our own. To start with they don’t spend a fortune on nuclear deterrents and policing the world. Either we are a big player in which case we should stop comparing ourselves to smaller counties, or we are like them so should abandon our big boys’ toys.

    Finally, isn’t it strange how we are supposed to just accept that the only solution is with ‘the markets’? it seems to me they act rather like the loan sharks who attack vulnerable families. Is the world so tied to a system that makes a few people very rich that we cannot come up with a better alternative?

  2. Philip says:

    One of the problems are the rating agencies – which the recent US report into the banking collapse noted that their links to the big players were incestuous. There would be significantly fewer problems if the rating agencies were properly regulated. In terms of what Governments have to pay to borrow, in effect they make the “market”. As they are an unregulated oligarchy with links to who knows who, there’s no reason to suppose it couldn’t be done better. The “market solution” favoured by Osborne (& Clegg) is condemning the likes of Ireland & ourselves to unnecessary years of zero or low growth, with the effects being almost entirely felt by the poor & the public sector, while the banks weep crocodile tears into their buckets of champagne.

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