Ireland gets its reward for being EU's little pet poodle -- nothing
The Government has only itself to blame for the disappearance of a deal on bank debt, says Colm McCarthy
BACK at the end of June, when European leaders agreed to 'break the vicious circle' between bust banks and struggling governments, EU Commissioner Olli Rehn predicted that a deal on Ireland's bank-related debt would be concluded before the end of October. The deal for Ireland, in other words, would have been finalised at the Brussels summit, which concluded on Friday.
It is a measure of the backsliding which has followed the June summit that not a single element in the agreement has moved closer to implementation. There is no agreement on the vital matter of centralised bank supervision, where the Commission's proposals have been resisted by Germany among others. There has been no progress either towards a common system of bank deposit insurance. No deal on Ireland's bank-related debt, a portion of which was imposed on the Irish Government by the European Central Bank, is now likely until well into 2013, if ever.