Tuesday 24 April 2018

Angela Merkel won't go to the wall for this country

German chancellor will sacrifice Ireland's needs if that is what it takes to form a government, writes Shane Ross

Angela Merkel
Angela Merkel

THE German chancellor's most likely coalition partners, the Social Democratic Party (SPD), are threatening to torpedo the Irish economic recovery as the price of an agreement with Angela.

The German left-wingers believe that Angela has been soft on Ireland. They are demanding that any more concessions from Germany should be met by Ireland giving up its sacred 12.5 per cent corporate tax rate.

In the socialists' sights are Angela's promise to allow a new European fund to rescue Irish banks. Last year Enda Kenny returned from a European summit in triumph brandishing a piece of paper. It raised Irish hopes that Germany had agreed to pump money from a European rescue fund (the ESM) into AIB and Bank of Ireland. Angela has been blowing hot and cold on Kenny's rash promises of legacy debt relief for Irish banks ever since. At one point she pooh-poohed the bullish Irish interpretation of the wording in the communique. Later she mellowed, promising that Ireland would be a "special case".

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