Crippling bailout deal must be renegotiated
Irish taxpayers should not be forced to borrow at penal interest rates, writes Michael Noonan
If it were not for the historical and potential future losses for Irish taxpayers from the Government's banking policy, Ireland's public finance problems would be judged as being difficult but manageable. There would have been no need for an EU/IMF bailout.
Fine Gael believes that the bank restructuring portion of the bailout deal will not work, and that a substantial and fundamental renegotiation of the deal must be conducted by the incoming Government. There is at present no sign that confidence in the banking system is being restored, principally because the new initiatives are a continuation of the failed banking policy of the present Government.
At the core of the loss of domestic and international confidence in Ireland's economy has been the Government's reckless commitment of over €100bn of State resources to bank bailouts (€60bn in recapitalisation; at least €40bn in asset purchases by Nama). This is three times the national debt before the crisis.