Opinion Analysis

Tuesday 17 October 2017

Rate cut was never off table -- it was simply a matter of time

The reduction in the interest rate on Ireland's bailout loans is a major victory for Enda Kenny as Taoiseach, but even more it's a victory for common sense and financial prudence.

Agreed in the frenetic days of November when Ireland's economy looked like it could collapse under the weight of its own debts, the interest rate levied -- mainly at the insistence of Germany -- was an attempt to punish countries for their own profligacy.

The rate of 5.8pc was not based on grand financial principles, but was based instead on a debatable idea that governments would change their long-term behaviour if rescue assistance was made extremely expensive.

Please sign in or register with Independent.ie for free access to Opinions.

Sign In

Independent.ie Comments Facility

INM has taken the decision to remove the commenting facility on its online platform Independent.ie to minimise the legal risk to our business that arises from Ireland's draconian libel awards system.

We continue to look forward to receiving comments through direct email contact or via social media, some of which may still be featured on the website Independent.ie

Don't Miss