So here’s what we know: None of the rumours have been confirmed regarding a bailout for Ireland. It has not been confirmed that the government is going to move its budget forward from December 7 to reassure markets.
Ireland is talking to European leaders, however, that is confirmed. But it obviously would be, because Europe’s finance ministers are now meeting in Brussels.
Prime Minister Cowen has claimed the country is stable, and on the right path in terms of its budget.
So this goes on further. We’ll likely get more detail out of Brussels as Brian Lenihan, the country’s finance minister, is now in Brussels. He says, according to The Guardian, that markets are “not being good to Ireland” because it is fully funded halfway through 2011.
Update 12:21: Latest News
- The Wall Street Journal is reporting Ireland, along with the EU and IMF, is plotting an €80 to €100 billion bailout.
- FT Alphaville says the budget is going to be moved up to this Thursday from December 7.
- The Prime Minister has made a weak speech defending his country’s position. It provided no details on the bailout or budget that weren’t already known.
It is falling into a campaign speech now…references to dole lines, people leaving Ireland for jobs abroad, and how the government is linked to the same people it has bailed out.
The rebuttal from the opposition has targeted the government, its bailout, and its failures.
The attack targets the bank bailout, its rising costs, particularly those of Anglo Irish Bank. How those costs have been passed onto the taxpayer.
Now for the opposition of the rebuttal…
Further note from the speech; @LorcanRK points out the government emphasised the importance of its support for deposits.
And that’s it from the speech; extremely limited, largely saying that there has been no request for a bailout and that are budget is going to be functional.
A brief mention of the country’s competitive tax rates, something some have speculated its European rivals continue to be displeased about.
This speech includes a great deal of positive rhetoric about the country’s future growth and competitiveness. There is also confidence the country’s future budget is appropriate, backed by the EU.
Prime Minister Cowen says there has been no request for a bailout from Ireland.
He’s talking about the lack of immediate funding pressure on the Irish sovereign because the country is funded through early 2011. Cowen admits there is a serious problem in European markets.
The Irish Prime Minister (or Taoiseach) is now speaking.
The Wall Street Journal is reporting that a bailout is being discussed, priced between €80 billion and €100 billion (via Forex Live).
Full details of the bailout have yet to emerge. But earlier today it became clear that a bailout of Ireland was imminent and that it would be a double bailout, targeting both the Irish sovereign and the Irish banking sector.
Germany and France have denied trying to force Ireland into a bailout from the IMF and EU. There is speculation that Ireland is being forced into this position by European power concerned about contagion from Ireland to the rest of the eurozone sovereigns and its banking system.