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Schäuble defends Ireland euro bailout

The Local · 22 Nov 2010, 08:40

Published: 22 Nov 2010 08:40 GMT+01:00

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Schäuble told broadcaster ZDF on Sunday night that he was confident Ireland's debt crisis could be contained without its spreading elsewhere in the euro zone.

"If we now find the right answer to the Irish problem, then the chances are great that there will be no contagion effects," he said.

His comments followed the Sunday evening announcement by the European Central Bank that Ireland had – as has long been expected – asked for international help to stabilise its teetering banking system. Various media reported that the bailout was expected to total €80 billion to €90 billion.

Schäuble said the bailout was unavoidable and added it was a matter of ''defending our common currency'' rather than any particular euro zone member.

Economy Minister Rainer Brüderle also strove to reassure Germany, saying the country’s celebrated economic recovery was not under threat.

"If help for Ireland does flow, this will not endanger the rebound," he told daily Bild. "In addition, Ireland must undertake efforts so that its economy becomes competitive. I have no doubt that Ireland will do that successfully."

Michael Heise, chief economist for Allianz, told the same paper he was confident the crisis in Ireland would not affect the German economy.

The European Central Bank said its governing council "welcomes the request of the Irish Government for financial assistance from the International Monetary Fund (IMF), the European Union and euro-area Member States.''

The request was ''warranted to safeguard financial stability in the European Union and in the euro area," it said.

"The European Union and euro-area financial support, together with the IMF financing, will be provided under strong policy conditionality, on the basis of a programme negotiated with the Irish authorities by the Commission and the IMF, in liaison with the ECB," it said.

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"We are confident that this programme will contribute to ensuring the stability of the Irish banking system and permit it to perform its role in the functioning of the economy," the statement said.

Dublin's request for aid was approved by EU finance ministers during an emergency conference call on Sunday evening.

The Local/DPA/AFP

The Local (news@thelocal.de)

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Your comments about this article

10:57 November 22, 2010 by facistland
First Greece, now Ireland, what next then? Germany, are you continue to be a sucker or what? Germany is better off without this freaking EU!!!
16:48 November 22, 2010 by Fruitkok
I understand that this is a German news-website, but i just wanna note that it's not just Germany who pays for the crap in the periphery. It's the smaller Northern countries whose people pay even more.

Btw, it would show some appreciation from the Irish side if they would increase their corporate tax to sth like 18%. If they refuse, they svck. Why handing money out to people who have been backstabbing you for 20 years with their tax-system. Don't forget that Ireland was at some moment the second wealthiest nation in the world and was still a big netto receiver of EU money. It's the same with the Greeks, they just don't deserve it. If Denmark would go bankrupt, I would be happy to support them, not the Irish or Greeks.
17:22 November 22, 2010 by William Thirteen
i am pro-Europe and support the measures necessary to stabilize the Zone and the currency but it does seem that Ireland should increase the corporate tax rate to a Eurozone norm. Otherwise it'll once again be us working stiffs which will shoulder these austerity measures...what a friggin' surprise!
20:11 November 22, 2010 by MonkeyMania
I love the racist talk from people who have no idea about the complexities of the situation. Fruitkok, your choice of adjectives describing the Irish and Greeks shows you lack of real intelligence and education.
22:01 November 22, 2010 by dan_agarlita
I'm also pro europe, we should help them like we help Greece. I love Europe.
23:34 November 22, 2010 by toemag
I am definitely pro €urope, and think that in the new year Portugal and Spain will be the next countries to go milk the €uropean cash cow.

Looking at this as a realist the €U has to many beneficiaries and way to many contributors to survive and will be lucky to see the end of the Mayan calender as a functioning organisation.

Now wasn't part of the deal to become a member state of this old boys club that you had to qualify, and to do so you had to be a stable and solvent nation.... Maybe the next country to default should be ejected from the €U.....
07:33 November 23, 2010 by MonkeyMania
toemag, more like toerag. What you propose is very arbitrary. Countries get into difficulty all the time. The US has been in difficulty for years now. Britain sought IMF help in 1976 and came out of it within a few years. The idea of a community is to benefit all. Not just those doing well at the moment. By they way, these are not cash handouts. These are loans which have to be repaid back. Or would you prefer to see decades of hard work go to waste and let the EURO and the EU crumble? Don't think Germany and France are doing this for the good of their health. They benefit enormously by a successful growing EU.
09:00 November 23, 2010 by DepotCat
Hey MonkeyMania...It's not just France and Germany dipping their hands into their pockets. The United Kingdom, despite not being in the Euro is committed to helping EU countries in trouble too. I wonder who it borrows that money from?

Anyway, so Fruitkok says how he feels and you call him a racist. Nothing like calling someone a racist to try and stifle debate. I think you will find that many people resent these countries riding on the back of other EU countries and becoming fleetingly wealthy at their expense, and then expecting those same countries to bail 'em out when they become "basket cases". His point about the low Irish corporation tax rate is valid. Also toemag touches on a good subject when he says "...wasn't part of the deal to become a member state of this old boys club that you had to qualify, and to do so you had to be a stable and solvent nation". It's long been suspected that certain countries were allowed into the EU and allowed to join the Euro without having to prove this, but with a promise that they would become stable and reliable economies. Mabye here is a lesson that the "old boys club" have learnt.
09:14 November 23, 2010 by toemag
@ MonkeyMania, why thank you for your compliment, just how long do you think that Germany and France can keep putting their hands in their pockets and producing the cash to save the other member states bacon?

What happens when Germany has to go cap in hand to the €uropean Parliament and say, "we are broke, give us a loan"???

GAME OVER "€uro" looses, and every one who had a hand in the game looses all of their wealth..
11:22 November 23, 2010 by MonkeyMania
As usual, the same old "Germany does it all by itself" argument. Who said anything about getting money for nothing? This is a loan which will be paid back, same as any other loan. Germany, France or Great Britain are not giving for free. The Irish economy is a stable economy and not comparable to what happened in Greece. When Germany goes for a loan, it also gets a loan. Governments are always borrowing. Give it up with the old boys club talk. You are way off the mark on this one. Then again, what can I expect from those reading the local which is no better than the tabloid press in the UK. Things are not black and white. Ireland did not want the bail out, it was pressured into taking the bailout in order to try stem the rising cost of borrowing that is happening to Portugal and Spain also. This is done for the common good of the EU and Germany especially. Germany relies on exports for it's economy and Ireland has a lot of German and other European expats living and working there. Stabilising the economies of Europe are necessary for us all to enjoy the freedom and liberty we have to move around Europe and live and work where we choose. Your simple arguments about Germany being the only nation that matters is both tiresome and worrying. Each state still has sovereignty and the EU accepts this as an integral part of the deal. Also, who said anything about other EU nations being insolvent? As far as I can see, only Greece has become insolvent. I am glad you guys are not bankers. Otherwise we would be living with millions of homeless people just because they missed a mortgage repayment. Don't forget who bailed out Germany 65 years ago. Or should the US have left Germany in ruins? Get real guys and try to be somewhat intelligent in your arguments and not have so short a memory.
13:39 November 23, 2010 by adipk
Germany was very nice and easy come and easy go country b4 this euro zone.

Life was perfect but after this euro , life became worst. People are now hand to mouth. High rate of taxes, low salaries etc put a lot of presure on average people.

Now milk average people more and feed some lazy people. waoo its unfair at all.
22:01 November 23, 2010 by toemag
Looking at the above, I must have missed something, oh and most of them bankers belong behind bars for the scam they pulled off, oh and they are the one's getting back to the bonus business while the rest of us are left wondering just how we are going to pay our car insurance in the new year after having a watered down Christmas celebration. Guess someone is a bigot....
07:42 November 24, 2010 by MonkeyMania
So, blame the bankers and not a country. Bankers are international companies. Countries are full of various nationalities, so blaming them is not the right thing to do. Banks in US, Germany and England have caused a lot of trouble lately also.
08:59 November 24, 2010 by toemag
The comment that I carefully crafted was rejected as "Profanity" if the truth constitutes what some would consider to be profane then there is something constitutionally wrong....
09:05 November 24, 2010 by MonkeyMania
Racism is the belief that the genetic factors which constitute race are a primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race.[1] Racism's effects are called "racial discrimination." In the case of institutional racism, certain racial groups may be denied rights or benefits, or receive preferential treatment.
10:02 November 24, 2010 by toemag
I just reread the comment that I carefully crafted, and I can't see any racism in it, yes I copy my comment's prior to posting. read them and determine if they are apt, or just rantings, an explanation, please.
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