We make headlines around globe for all wrong reasons
Published 01/10/2010 | 05:00
MOSTLY negative international publicity was heaped upon Ireland yesterday as it emerged that the bailout of Anglo Irish Bank could cost up to €34bn.
There were more than 1,000 grim news reports around the world, with most emphasising the massive cost of picking up the pieces of Ireland's property-fuelled "Celtic Tiger" economic boom.
And there were also live broadcasts from international financial channels CNBC and Bloomberg TV.
BBC News described how the cost of bailing out Anglo was "equivalent to Ireland's annual taxation revenue" and said the "Irish Republic was viewed as one of the weakest economies in the eurozone". Their Dublin correspondent Shane Harrison reported: "It may have been bright and sunny in Dublin this morning but that hasn't stopped people calling it Black Thursday".
'The Economist' newspaper wrote about the country's "bottomless bailout" for its banks.
"Ireland looks like an abstemious jogger that has suffered a heart attack," it said.
"Ireland has tried hard to fix its problems. Public-sector wages have been slashed and new taxes raised. The economy is already flexible. As its troubled banks eat up ever more cash, it now seems short of options to return it to health."
'The New York Times', reported the story with its customary old-style headline: "Ireland's Bank Bailout Mounts, Swelling Deficit."
The Reuters news agency said that Ireland was facing a bill of up to €50bn to clean up its banks "equating to over €11,000 per head of a recession-weary population already reeling from savage government cutbacks".
The influential 'Financial Times' newspaper reported that the bailout would lift Ireland's budget deficit to a record 32pc of gross domestic product -- "10 times the European Union guidelines for eurozone members".
The Canadian Broadcasting Corporation reported that the bank bailout showed "Europe's debt crisis is still dumping more woe on shell-shocked taxpayers".
'Time' magazine columnist Michael Schuman wrote a blog about the new estimates released by the Government of the costs of rescuing the banking sector. "You might want to sit down because the numbers are pretty ugly," he said.
The earliest reports at 6.30am yesterday from Reuters and Bloomberg were positive because they were headlined with the European Commission's welcome for the Government's decision to shore up Anglo Irish Bank with more capital. But within hours, the agencies had updated their reports as the scale of the bailout became apparent.