Getting lost on a road to nowhere
Now is the time to scrap grandiose plans for unnecessary and costly transport projects, writes Colm McCarthy
A FURTHER week of indecision and weakening confidence in European political and financial leaders has brought resolution of the banking crisis no nearer. But the fault-lines are opening up between a new alliance of the IMF and the US Treasury, which want early bank recapitalisation and debt relief for Greece, and the European Central Bank and EU politicians, which still do not appear to accept that delay increases the ultimate costs of crisis resolution.
The Irish Government seems to have accepted that unguaranteed bondholders in defunct banks will have to be paid at the insistence of the ECB, but will expect a debt relief deal down the road.
Attention in Ireland will focus over the next couple of months on the composition of the December Budget adjustments, which must see cuts in current and capital spending as well as increases in tax revenues.