Irish PM Enda Kenny to tell EU leaders: We WILL burn the bank bondholders to spare taxpayers
By JOHN LEE




Enda Kenny will stun European leaders this week by telling them he intends to ‘burn’ bank bondholders, the Irish Mail on Sunday can reveal.

He is determined to ease the pressure of debt on Irish taxpayers.

The Taoiseach will tell Thursday’s Brussels summit that it is now coalition policy to force speculative bondholders to share the debts incurred by reckless Irish banks, according to Agriculture Minister Simon Coveney.

Mr Coveney revealed the dramatic shift in policy in an interview with the MoS.
As late as last week, Finance Minister Michael Noonan was still prevaricating on pre-election threats to burn bondholders.

But stress tests have since shown that the Government will have to access up to €35bn more in bail-out funds to recapitalise the banks, on top of €190bn already owed – a level of debt now deemed unsustainable.

Mr Kenny will reveal the new ‘burden-sharing’ policy on Thursday, when he will also attempt to shave at least a percentage point from the ‘punitive’ interest rate being charged on the EU bail-out.
He will also reiterate to Nicolas Sarkozy and Angela Merkel that Ireland will not countenance any increase in the 12.5% corporation tax rate.


Speaking in the Irish embassy on Avenue Foch in Paris after a meeting of EU agriculture ministers in Brussels on St Patrick’s Day, Mr Coveney said Fine Gael and Labour were both in tune with the plan to make private investors assume a share of the €190bn bank debt.

‘We don’t think that it’s fair or equitable that Irish taxpayers should be required to take on all of the debts associated with the mistakes made by Irish banks and by banks who lent money to Irish banks,’ he said.

............

Asked what would happen the bondholders, Mr Coveney said: ‘They will be asked to take a portion of the debt – in other words, that they would take a discount on their senior bonds.
Asked specifically if that would mean ‘burning the bondholders’, Mr Coveney replied: ‘You can call it what you want but it’s called essentially -burden-sharing.’

Question: ‘Would you be in favour of that?’


‘Yes, I would. We’re not going to make progress on that issue in the short term – that’s, in my view, simply a fact.’




Read more: http://www.dailymail.co.uk/news/article-1368054/Irish-PM-Enda-Kenny-tell-EU-leaders-We-WILL-burn-bank-bondholders-spare-taxpayers.html#ixzz1HAUdm48Q

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Ok, being interviewed by an Irish American on Paddy's day probrably not that tough...but a good interview none the less.


Should be a very interesting summit.

It's a Daily Mail story - so take it with a rock of salt.

This is weird, though, having a Taoiseach that actually looks out for the country's best interests!

If it's true, Merkel and Sarkozy won't be best pleased - but they never seem to be.

Fun times ahead!

edit: He was also surprisingly good in that Bloomberg interview - much better than his two Fianna Fáil predecessors ever could be, but that wouldn't be hard.

I am actually pleasantly surprised with his performance to date. The man has some balls :P About time we had that in a taoiseach! He not the best speaker, but he faired well in that interview.

I agree and I admit I may have underestimated him a great deal like alot of people. Impressive first 2 weeks in office by any standard.

Be hoping to see more of that steal at the EU summit this week.

Yeah Europe didn't like that little stunt he pulled, now look. Ireland's stress tests require more loans and guess who Kenny has to go ask for this? The same people he pissed off. Did it take much brains to say this thing till after the stress test?

Actually most of it is coming from the National Pension Reserve Fund - ie our money.

You'll still need to go to Europe and they will probebly think of putting up the price so you don't ask for lower in the future.

You'll still need to go to Europe and they will probebly think of putting up the price so you don't ask for lower in the future.

No, there is no extra money needed because there was a 35bn buffer in the bailout fund. Given 17bn is from the NPRF that means any unlikely new injection would have to exceed €20bn.

As much as I dislike Constantin Gurdgiev and Paul Sommerville, they're right in saying we should take a tougher approach to Europe.

It's centralised European interest rate policies, and valuing of the currency to suit Franco-German interests that has the peripherals in such a mess. (as well as domestic negligence of course)

Also, a collapse of the Irish banking sector would be detrimental to the French and German banking industries, and the European economy as a whole.

Their banks must bear responsibility for the irresponsible/foolish lending they made to Irish banks, and their willing efforts to fuel the Irish, Spanish etc. propery booms.

Angela, Nicolas and co should respect the burden ordinary Irish citizens are taking to keep the European banking sector afloat!!!

And, it's equally important that our Taoiseach stand up to them, and makes them aware of the harsh consequences that will arise if our partners don't take a balanced apporach to reaching solutions!!!

Well that's the problem that occurs when you are part of a single currency. Germany and France, more so Germany, will of course have more influence as it is the powerhouse of the European economy and by far the most important.

If decisions are made to suit smaller economies that will hurt the German or French economy then the entire Eurozone will suffer.


Thank god the UK has no interest in joining.....

Yup. We just need to get ourselves out of this corrupt organization once and for all, I think Ireland should follow suit.

Yup. We just need to get ourselves out of this corrupt organization once and for all, I think Ireland should follow suit.

You seem to be confusing the Eurozone with the European Union. If Ireland were to leave the EU then the consequences would be incredibly unpleasant. It would be an economic disaster for the country.

No, there is no extra money needed because there was a 35bn buffer in the bailout fund. Given 17bn is from the NPRF that means any unlikely new injection would have to exceed €20bn.

Ah thanks for clearing that up, I would still presume there may be extra need for lending from the Eurozone in the future and they wont forget Kennys remarks.

Sorry but im not aware that he said anything provocative at recent summits? It is simply reality that Ireland's situation is completely different to Greece and Portugal. Ireland has an accute banking problem the nature of which means that there is co responsibility with large European banks which lent to Irish banks to exploit the property market. I think it is perfectly reasonable considering the level of gaurtantee given by taxpayers that a strong case is made that there is a joint responsibility and that a country the size of Ireland cannot be expected to gaurantee the debts of European banks whilst simultaneously being hit on the head with extortionate interest rates.

As someone who lives in Birmingham now, but still cares about Ireland as my entire Dad's side is Irish, I really think Ireland should leave the Euro and enter a customs union with Britain, you have more in common with us than the continent, would you rather your interest rates and monetary policy be set in London or by Germans? Your country is being bullied by bankers in Frankfurt, don't stand for it anymore, join the resistance!

Ireland is already in a customs union with Britain and 25 other countries!

As someone who lives in Birmingham now, but still cares about Ireland as my entire Dad's side is Irish, I really think Ireland should leave the Euro and enter a customs union with Britain, you have more in common with us than the continent, would you rather your interest rates and monetary policy be set in London or by Germans? Your country is being bullied by bankers in Frankfurt, don't stand for it anymore, join the resistance!

Lol.

As someone who lives in Birmingham now, but still cares about Ireland as my entire Dad's side is Irish, I really think Ireland should leave the Euro and enter a customs union with Britain, you have more in common with us than the continent, would you rather your interest rates and monetary policy be set in London or by Germans? Your country is being bullied by bankers in Frankfurt, don't stand for it anymore, join the resistance!

:lol::lol::lol::lol:

Ireland is already in a customs union with Britain and 25 other countries!

As a geography student I should not have made that mistake, slightly embarresing, I mean eire and UK should form their own monetary union, and still remain members of european common market. I myself am a protectionist however, ideally there would be no such thing as a 'common market' or 'free trade area' they just lead to some peeps losing out.

Like US does in NAFTA because jobs go to mexico for low wages and manufacturing costs, and no import tariffs to pay

Our interest rates are set by the ECB as are all EU member states.

Our interest rates are set by the ECB as are all EU member states.

Incorrect, only Eurozone members have their interest rates set from Germany. The UK has it's own currency, with fiscal policy set from London at the Bank of England.

Forgot to stick the word Euro in there.

I was just needlessly nitpicking lol, so what do you think about my proposition? I myself would very much like Ireland readmitted into the union of equal states from there we can move towards closer integration with Europe as one.