The crisis looks likely to continue, as the pressure on Ireland continues to expand. The process is now moving to Dublin, and it looks like the chatter about Ireland trying to make this a banking sector only bailout has some truth, from the rhetoric we heard out of the committee.
- Ireland is exploring, with the EU and IMF, how it might restructure its banking sector.
- It has not asked for a bailout…yet.
- The process is now being moved to Dublin, where exploration of the issue will continue.
- It will take 8 days for the bailout to go from request, to action.
- No size or time scale yet known for the bailout.
No answer on how big or when this bailout, if it does occur, will take place.
“The talks are being move to Dublin,” in terms of a financial bailout. Rehn clarifies that the trip to Ireland is about looking into the country’s banking sector, on how to restructure it, if Ireland requests and the eurozone members agree. It would take 8 days for the fund to be activated (per LorcanRK).
On Ireland, Rehn says he expects the four year fiscal plan to be presented soon and to be “convincing.” Rehn says it is essential Ireland completes its “financial repair” in terms of its banking sector.
Olli Rehn is now speaking…he is calling for collective unity in defending the financial stability of the European Union. He is saying there will be a time for cool heads to take the necessary steps to that effect.
There has still been no request for aid from Ireland or Portugal. If there has been, it is still a very behind-closed door affair. With Ireland not asking for help, it is likely pressure will continue to remain high on Ireland and its potential for spread to other sovereigns remains.
Onto Greece, Juncker recognises that Greece is, generally, on the right path in terms of its adjustments.
Juncker follows by praising Portugal for its reforms, but suggests it needs to be more specific on how it plans to carry out these reforms. He says members have faith in Portugal’s ability to pass their budget.
President of the euro group Jean-Claude Juncker is saying he has full confidence in Ireland‘s budgetary plan. He is saying that he is pleased Ireland is consulting with the ECB and the European Commission in dealing with the its problems. Juncker says that the decision made over Ireland will be unanimous amongst the 17 members.
And we’ve waited for U.S. markets to close, now speakers are sitting down.
Here are the latest rumours and tidbits ahead of the comment:
- From the BBC’s Paul Mason: This deal is about more than just Ireland, includes Portugal, and is about building a firewall (stopping the damage from hitting Spain). He also suggests the UK may be involved in a bi-lateral bailout deal with Ireland, per the WSJ (think he’s referring to the UK pitching into the European EFSF).
- From The Guardian: Germans are not pleased about this latest bailout.
- From Bloomberg: The Governor of the Bank Of England says the UK’s exposure to Ireland is not “trivial.”
It is now 3:40 PM ET, and the wait continues. Eurozone finance ministers are nearly two hours late for their comment, post meeting.
More to follow when the conference goes live.
To tide you over, a pretty solid round up as to why eurozone members may be more upset with Germany and Chancellor Merkel than Ireland and its Taoiseach, from the FT.
Earlier, Ireland’s prime minister denied the country had requested a bailout but said it was in discussions with Europe authorities.
rumours persist the country may be on the brink of a €80 to €100 billion bailout from the EU and IMF.