Only a miracle can save financial system from complete meltdown
Despite election pledges the Government never had any intention of burning bondholders, says James Fitzsimons
Published 03/04/2011 | 05:00
MICHAEL Noonan talks the talk, but last Wednesday the only walking he did was backwards. It confirms that the EU is running the show. The light we saw flicker at the end of the tunnel has been blown out and is unlikely to be rekindled any time soon.
The new Government had an opportunity to deliver on its election promises. It failed abysmally on one of the key issues. It didn't renegotiate the EU/IMF deal to withhold repayments to the senior bondholders, as promised. It might have been shot down in flames had it persisted with this approach. But it would have preserved its credibility at home. Its proposed bank reorganisation is a whitewash, and only intended to distract us from the cover-up of what is going on at the highest level in Europe.
This is not totally unexpected, but it is very disappointing. Weeks before the general election Pat Rabbitte and Simon Coveney said, on separate occasions, that protecting our banks was of paramount importance. It was clear even then that they had no intention of penalising senior bondholders. That was all election talk. We still have politicians who are not up to the job of reforming our banks and setting us on the path to recovery.