Goodbye Irish Sovereignty: EU Commissioner Olli Rehn Issues His First Directive As Overlord Of The Emerald Isle
Now that Ireland is a vassal state of the EU, and its democracy as its citizens know it, is finished, it was only a matter of time before the EU's Economic Affairs counsel started telling Ireland what and how to conduct its affairs. Sure enough, it took all of 24 hours between the "bailout" and the first order. RTE reports that Olli Rehn "says it would not be advisable for any new government to try to renegotiate key aspects of the IMF/EU deal." In other words, the EU is promptly realizing that the new Irish government is likely to reneg in part or all of the just struck deal and is therefore interjecting itself in the process. "In an interview with RTÉ News, Commissioner Rehn said it did not want to involve himself in democratic politics in Ireland, but he said: 'They are key parts of the programme so I would not advise re-opening these'." In other words, despite hating to do so, Rehn is now supreme dictator of Ireland, and the nation must do his every bidding if it wishes to not receive the Mutual Assured Destruction treatment and not get any banker Holiday greetings cards this year.
More from RTE:
He said he 'fully understood' the frustration and anger of the Irish people about the banking sector, which he said had made big mistakes in the past. 'However we have to move on and the essential thing is to complete the repair, implying both the restructuring and downsizing of the banking system,' he said.
Of course, only those moving on are the bankers who get no impairments whatsoever, while Irish taxpayers, now in perpetual servitude to the plutocrats, are forced to pray that potato famines do not make a sudden reappearance.
The one thing the corpulent bureaucrat is most opposed to is preserving the illusion that Irish pensions are for anything but pension funding:
On the use of the NTMA's cash buffer and the pension reserve fund, Mr Rehn said: 'These are part of the programme in terms of self-financing by Ireland. It increases the ownership and commitment of Ireland to the success of the programme, and it is also important for other EU member states because this package will have to be adopted in all the other euro area member states.'
Mr Rehn said he did not see any tensions or reservations in other member states approving the loan. 'I trust there is the same sense of responsibility and solidarity both for Ireland and Europe as a whole,' he stated.
As to why bankers once again get away scot free, here it is: Mutual Assured Destruction:
Mr Rehn denied there was any difference of opinion between the ECB, the European Commission and the IMF on whether or not senior bondholders should be 'burned' in the Irish banking sector.
He said senior debt would not be jeopardised, otherwise there could be the risk of further contagion in the system.
Of course, this is a lie as various states had expressly indicated an interest in senior impairments. But who cares. Fat politicians have to be bribed and fed. That's all that matters.
In the meantime, we present the Spanish 10 year. We wonder if Olli Rehn is already practicing his first speech as Viceroy of Katalunia.
h/t Mark Mansfield
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but....
EU Talking Down to the Irish: Rehn Warns Against Renegotiation
The EU Commissioner for Economic Affairs Olli Rehn has said that it would not be advisable for any new government in Ireland to attempt to renegotiate either the interest rate on the EU/IMF loan or the use of the National Pension Reserve Fund in repairing the banking sector.
Mr Rehn said he did not want to involve himself in democratic politics in Ireland, but he said: 'They are key parts of the programme so I would not advise reopening these.'
He said he 'fully understood' the frustration and anger of the Irish people about the banking sector, which he said had made big mistakes in the past.
'However we have to move on and the essential thing is to complete the repair, implying both the restructuring and downsizing of the banking system,' he said.
'The fiscal targets need to be achieved, the agreed structural reforms implemented. Especially for 2011, there is already very far-reaching decision-making going on. For the outer years there is more room for manoeuvre.
'Of course there is always room for manoeuvre in the normal budgetary process as long as the fiscal targets are met in line with the programme.'
Mr Rehn said he had no doubt Ireland would rebound from its recession, but admitted there had been a concern that contagion from the Irish banking sector could spread to other European banks.
That was why repairing the Irish banking sector was vital, he said.
On the use of the NTMA's cash buffer and the pension reserve fund, Mr Rehn said: 'These are part of the programme in terms of self-financing by Ireland.
'It increases the ownership and commitment of Ireland to the success of the programme, and it is also important for other EU member states because this package will have to be adopted in all the other euro area member states.'
Mr Rehn said he did not see any tensions or reservations in other member states approving the loan. 'I trust there is the same sense of responsibility and solidarity both for Ireland and Europe as a whole.'
The final interest rate, he said, would be specified this week, but it was based on the same principles that the IMF applied and that the EU had applied in relation to Greece, and as agreed by Ireland when Greece received its €110bn bailout.
Mr Rehn denied there was any difference of opinion between the ECB, the European Commission and the IMF on whether or not senior bondholders should be 'burned' in the Irish banking sector.
He said senior debt would not be jeopardised, otherwise there could be the risk of further contagion in the system.
'The EU-IMF-ECB troika worked in excellent co-operation and there was no significant deviation of positions on these issues.
'Our position is very clear. The senior debt, not to speak of sovereign debt, should not be and will not be restructured. It is another thing as regards subordinated bondholders.
'These decisions of the EU finance ministers are based on the need to avoid any further contagion effect.'
Despite the European Commission's growth forecasts for next year, published this morning, showing a lower rate of growth to that of the Government in the four-year plan (0.9% as opposed to 1.75%), Mr Rehn said he had no doubt that Ireland could grow its way out of trouble.
'I'm certain Ireland, which is a flexible and open economy, with a very skilful and competent labour force, will rebound from this current recession.
'There is already evidence of export growth picking up. In September this year Ireland had the highest increase in industrial production in the EU.
When asked if Ireland's debt may need restructuring if growth does not materialise, he said: 'There is no need for that. In fact the issue of debt sustainability was one of the critical questions of the discussions in the preparations of the (EU/IMF) programme, as well as in the meeting of EU finance ministers.
'Precisely because of the realistic macro-economic scenario of GDP growth we have extended the period of fiscal adjustment to 2015 so it is realistic and doable.
This will also facilitate better growth dynamics and ensure debt sustainability.'
On Portugal, Mr Rehn said that although the country has had sluggish growth over the past decade it had taken bold steps to reduce its deficit and would be announcing structural reforms.
But he admitted that the Commission was concerned about the danger of contagion, not just in the sovereign debt sphere, but also in the banking sector because of the inter-connectedness of European banks.
'Therefore it is essential that the Irish banking system will become viable, for the sake of Ireland and for the sake of Europe,' he said
Mr Rehn said he did not want to involve himself in democratic politics in Ireland, but he said: 'They are key parts of the programme so I would not advise reopening these.'
He said he 'fully understood' the frustration and anger of the Irish people about the banking sector, which he said had made big mistakes in the past.
'However we have to move on and the essential thing is to complete the repair, implying both the restructuring and downsizing of the banking system,' he said.
'The fiscal targets need to be achieved, the agreed structural reforms implemented. Especially for 2011, there is already very far-reaching decision-making going on. For the outer years there is more room for manoeuvre.
'Of course there is always room for manoeuvre in the normal budgetary process as long as the fiscal targets are met in line with the programme.'
Mr Rehn said he had no doubt Ireland would rebound from its recession, but admitted there had been a concern that contagion from the Irish banking sector could spread to other European banks.
That was why repairing the Irish banking sector was vital, he said.
On the use of the NTMA's cash buffer and the pension reserve fund, Mr Rehn said: 'These are part of the programme in terms of self-financing by Ireland.
'It increases the ownership and commitment of Ireland to the success of the programme, and it is also important for other EU member states because this package will have to be adopted in all the other euro area member states.'
Mr Rehn said he did not see any tensions or reservations in other member states approving the loan. 'I trust there is the same sense of responsibility and solidarity both for Ireland and Europe as a whole.'
The final interest rate, he said, would be specified this week, but it was based on the same principles that the IMF applied and that the EU had applied in relation to Greece, and as agreed by Ireland when Greece received its €110bn bailout.
Mr Rehn denied there was any difference of opinion between the ECB, the European Commission and the IMF on whether or not senior bondholders should be 'burned' in the Irish banking sector.
He said senior debt would not be jeopardised, otherwise there could be the risk of further contagion in the system.
'The EU-IMF-ECB troika worked in excellent co-operation and there was no significant deviation of positions on these issues.
'Our position is very clear. The senior debt, not to speak of sovereign debt, should not be and will not be restructured. It is another thing as regards subordinated bondholders.
'These decisions of the EU finance ministers are based on the need to avoid any further contagion effect.'
Despite the European Commission's growth forecasts for next year, published this morning, showing a lower rate of growth to that of the Government in the four-year plan (0.9% as opposed to 1.75%), Mr Rehn said he had no doubt that Ireland could grow its way out of trouble.
'I'm certain Ireland, which is a flexible and open economy, with a very skilful and competent labour force, will rebound from this current recession.
'There is already evidence of export growth picking up. In September this year Ireland had the highest increase in industrial production in the EU.
When asked if Ireland's debt may need restructuring if growth does not materialise, he said: 'There is no need for that. In fact the issue of debt sustainability was one of the critical questions of the discussions in the preparations of the (EU/IMF) programme, as well as in the meeting of EU finance ministers.
'Precisely because of the realistic macro-economic scenario of GDP growth we have extended the period of fiscal adjustment to 2015 so it is realistic and doable.
This will also facilitate better growth dynamics and ensure debt sustainability.'
On Portugal, Mr Rehn said that although the country has had sluggish growth over the past decade it had taken bold steps to reduce its deficit and would be announcing structural reforms.
But he admitted that the Commission was concerned about the danger of contagion, not just in the sovereign debt sphere, but also in the banking sector because of the inter-connectedness of European banks.
'Therefore it is essential that the Irish banking system will become viable, for the sake of Ireland and for the sake of Europe,' he said
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