FG Labour Cabinet Meets Tonight on Revised EU / IMF Memorandum of Agreement / Bailout Terms

[C. Flower]

The Cabinet is meeting this evening to consider the terms of a revised bailout deal with the EU, the ECB and the IMF. The background to the content of the agreement includes the downward revised GDP growth projection for Ireland by the IMF and the ICB and the continued deterioration of the banking situation, with liquidity breaches by the Bank of Ireland in January and April and with the banks entirely reliant on the ECB for liquidity in the face of a flight of cash from the Irish banks. In spite of FG billing its imminent May budget as a "Jobs Budget", the briefing notes to the Minister for Finance put far more emphasis on the banks than on jobs. The position of the presumed author, Kevin Cardiff, of the Department of Finance is under question given his central role in the horrendous debacle of the D o F's "management" of the banking crisis since 2007.


http://www.breakingnews.ie/ireland/cabinet-meeting-to-discuss-revised-bailout-deal-501322.html




Details of the deal will be published tomorrow ,however, the full, revised memorandum of understanding between the Government and the so-called Troika will not be released until it is approved at EU level.

Finance Minister Michael Noonan said the deal would involve changes from the agreement reached with the Fianna Fáil/Green coalition last year.

It is expected to allow for the Government to introduce a new jobs budget and to reverse the cut in the National Minimum Wage.

Minister for Transport, Tourism and Sport, Leo Varadkar said he was still hopeful a cut in the interest rate on the bailout loan can still be achieved: "It's a long way to go, I think it's fair to say that renegotiating the EU/IMF agreement is going to be a lot harder than we thought it was going to be.

"We still think we're going to get the interest rate reduction, but that is nowhere near as easy to achieve as we thought it was going to be."


Read more: http://www.breakingnews.ie/ireland/cabinet-meeting-to-discuss-revised-bailout-deal-501322.html#ixzz1JWkyg0mn

[Apjp]

The Cabinet is meeting this evening to consider the terms of a revised bailout deal with the EU, the ECB and the IMF. The background to the content of the agreement includes the downward revised GDP growth projection for Ireland by the IMF and the ICB and the continued deterioration of the banking situation, with liquidity breaches by the Bank of Ireland in January and April and with the banks entirely reliant on the ECB for liquidity in the face of a flight of cash from the Irish banks. In spite of FG billing its imminent May budget as a "Jobs Budget", the briefing notes to the Minister for Finance put far more emphasis on the banks than on jobs. The position of the presumed author, Kevin Cardiff, of the Department of Finance is under question given his central role in the horrendous debacle of the D o F's "management" of the banking crisis since 2007.


http://www.breakingnews.ie/ireland/cabinet-meeting-to-discuss-revised-bailout-deal-501322.html




Read more: http://www.breakingnews.ie/ireland/cabinet-meeting-to-discuss-revised-bailout-deal-501322.html#ixzz1JWkyg0mn


Varadkar makes me sick. His smarmy know all attitude and utter faith in thatcherite principles would make any red want to leave in the morn'. Hes gonna insist on major reductions of cie staff, full privitization of transport and tourism, and major pay cuts of 10-20% for said transport staff before priv. in the lie of a promise that it might help avoid said priv. God, what an establisment crony. And thats not to mention the social damage his heavy cuts on sport will inflict...

[C. Flower]

Wages are already at a competitive level, internationally. Further cutting at this stage, apart from the overpaid and over-bonused at the top of the scale, will be purely destructive of what's left of the local economy.

[Griska]

The wage battle has already begun.
Noonan, according to RTE, said today that public sector savings weren't on target.
Unions are telling a different story.

Craic agus Ceol.
Well, craic anyway.

[C. Flower]

The draft amended Memorandum should be out this morning.

[ang]

Live streaming of press conference on review here:-

http://www.merrionstreet.ie/index.php/2011/03/live-streaming-stress-test-press-conference-31st-of-march-2011/

[Baron von Biffo]

Live streaming of press conference on review here:-

http://www.merrionstreet.ie/index.php/2011/03/live-streaming-stress-test-press-conference-31st-of-march-2011/

Howlin repeatedly deferring to his boss, the Finance Minister and Noonan presenting himself as the good cop to Rabbitte's bad cop.

[Baron von Biffo]

REAs are for the chop. This government is IBEC/ISME heaven.

[Baron von Biffo]

Noonan talks about getting people confident enough to spend again - How does he think the 300,000 PS workers and their families will be confident about spending when he's threatening their livelihood?

[Captain Con O'Sullivan]

300,000? Is that right? Bad news but if that figure is correct it is way over the top for a population the size of Ireland.

But to go back to the OP I read all this as the red-line indicator keeping between repayments schedules to the IMF/ECB and other debtors and social unrest. Everytime the population screeches and morale drops towards 'screw it all' level there will be a small 'hardwon' concession and every time there is good news the red-line indicator will tick towards keeping taxpayer in the stress zone enough not to demand better conditions.

I think that is the new narrative- never enough bad news for the population to demand default and never enough good news for a pay rise as that would be 'unnafordable for the nation under current circumstances'.

Its like political heroin dealing- enough of a supply to keep the addict coming back hopefully but never a surplus enough so that the price drops.

[Baron von Biffo]

Surreal stuff reminiscent of the claim by an American officer during the Viet Nam war that, "We had to destroy the village in order to save it." In 21st century Ireland it's become "We have to cut jobs to create employment."

[ang]

ECB, EC & IMF Quarterly Review statement on Ireland here:-


Following their review of the economic progress of Ireland since receiving a bailout in November 2010, the European Commission, European Central Bank and International Monetary Fund released the following statement:

“Staff teams from the European Commission (EC), European Central Bank (ECB), and International Monetary Fund (IMF) visited Dublin during April 5-15 for the first quarterly review of the government’s economic programme. The objectives of the programme are to address financial sector weaknesses and to put Ireland’s economy on the path of sustainable growth, sound public finances, and job creation. Maintaining social fairness in shouldering the burden of adjustment is one of the programme priorities.

The teams’ assessment is that the programme is on track but challenges remain and steadfast policy implementation will be key.

Ireland is making good progress in overcoming the worst economic crisis in its recent history. Programme implementation has been determined, despite the period of political change and an uncertain external environment. The new government, through its Programme for Government and its decisive approach to banking sector reforms, has taken full ownership of the goals and key elements of the EU-IMF-supported programme.

The macroeconomic outlook for 2011 is for growth to resume. After contracting by 1 percent in 2010, real GDP is expected to grow in 2011, albeit more slowly than previously forecast. Strong exports lead the expansion, supported by improved competitiveness and world trade growth. Domestic demand will continue to contract, although at a slower pace. Core inflation is forecast to remain subdued but rising energy and food prices are increasing headline inflation.

In the banking sector, the comprehensive recapitalization and reforms announced on March 31 are a major step towards restoring the Irish banking system to health. The credibility of the exercise has been reflected in positive market reaction, with Irish bond yields declining following the announcement. The review mission discussions focused on the priorities for implementing these reforms, including reorganising and deleveraging the banking system, and strengthening its capital base. These steps are crucial for enabling the banking system to become a driver of economic recovery.

On the fiscal front, the targets for end-December 2010 and end-March 2011 were met by a comfortable margin. The budget deficit is projected at about 10 ½ percent of GDP in 2011, and the authorities reaffirmed their strong commitment to the fiscal consolidation agreed in the EU-IMF-supported programme, as well as to a deficit of 3 percent of GDP in 2015. In the near-term, the authorities plan to adopt a Jobs Initiative package to stimulate employment, within the agreed fiscal targets. The authorities are also carrying out a comprehensive spending review to ensure that fiscal consolidation is underpinned by the most effective use of resources. These, and other measures included in the programme, will help ensure sustainability of public finances.

Regarding structural reforms, supportive measures in the Jobs Initiative and reform of sectoral wage-setting arrangements on the basis of an ongoing review will foster job creation. The government also plans to introduce legislative changes to remove restrictions on trade and competition in sheltered sectors, including the legal profession, and the pharmacy profession.

Continued strong programme implementation, with support from the EU and the IMF, remains key to achieving Ireland's return to capital markets at affordable interest rates.

The government’s programme is supported by loans from the European Union and EU member states amounting to €45.0 billion and a €22.5 billion Extended Fund Facility with the Fund. Ireland’s contribution is €17.5 billion. Approval of the conclusion of the first review will allow the disbursement of €4.5 billion (€2.9 billion by the EU, and €1.6 billion by the IMF). The mission for the next programme review is scheduled for July 2011."


http://www.businessandleadership.com/economy/item/29562-statement-by-the-ec-ecb/

[disability student]

The wage battle has already begun.
Noonan, according to RTE, said today that public sector savings weren't on target.
Unions are telling a different story.

Craic agus Ceol.
Well, craic anyway.

What has the public sector got to do with this financial upheaval that we are experiencing now?? The crosshairs should be focused at the main banks/main players who have caused all the trouble re economic turmoil. Why is RTE listening to this type of rubbish that Noonan is spouting at all directions. Noonan was speaking in the form of double speak.

[Apjp]

What has the public sector got to do with this financial upheaval that we are experiencing now?? The crosshairs should be focused at the main banks/main players who have caused all the trouble re economic turmoil. Why is RTE listening to this type of rubbish that Noonan is spouting at all directions. Noonan was speaking in the form of double speak.

because RTE is paid to do so. aside from maybe dobbo, RTE are paid to brainwash the Irish public. It's very unsubtle propaganda from their staff. just think for a sec. For example, Pat Kenny last monday said the reason young men kill themselves on the frontline, was because of young women. almost every debate he holds are designed to divide irish society and the participants in the crowd.

[C. Flower]

http://www.irishtimes.com/newspaper/frontpage/2011/0416/1224294804343.html?digest=1

The Review found that "Ireland had easily met its fiscal targets"...

Easy for who ?

The main changes in the Memorandum are


a reversal of the €1 cut in the minimum wage; the incorporation of the Coalition’s jobs initiative to be delivered within 100 days of entering Government; no further transfer of assets from banks to Nama; and the acceptance of the Government’s planned comprehensive spending review to be completed by September.

Mr Noonan said all conditions set down by the troika for the first quarter of 2011 had been met. He said he would raise the issue of the interest rate Ireland is paying for the rescue loan at a meeting of European finance ministers next month. He said the reversion to the €8.65 national minimum wage would be balanced by a halving of employers’ PRSI costs for all those earning €356 or less each week.

He would not say how much this would cost the Exchequer, or give details on how it would be funded, prompting criticism from Opposition parties.

Fianna Fáil’s finance spokesman Brian Lenihan said that in spite of the rhetoric about change, the bailout package remained the “same deal, with the same political priorities identified by the last government.

“The only difference is an additional cost of approximately €400 million to the taxpayer to fund a reduction in PRSI. How are they paying for the reduction in PRSI?”

Sinn Féin’s finance spokesman Pearse Doherty also said the Coalition remained bound to the same EU-IMF deal, having achieved only a few “minor changes”.

Mr Doherty also claimed the lowering of the employers’ PRSI rate only for those earning the minimum wage would incentivise employers to drive down wages for others just above the minimum wage.

He said that if PRSI were halved, an employer would save €61 a week by reducing to €356 the wages of a worker earning €390.

Mr Noonan also refused to divulge the overall cost of the jobs initiative, or explain how it would be financed, apart from saying it would be “fiscally neutral”.

He accepted that its inclusion in the EU-IMF rescue programme had resulted in “a lot of new conditions” but said he would not disclose these until the initiative was announced.

The revised document states that the targeting of sheltered sectors of the economy – a reference to the pharmacy, legal and medical professions – would be examined, as would the joint labour committee structures setting out pay rates, terms and conditions for workers in other sheltered sectors.

[C. Flower]

Video of the IMF Press Conference -

http://www.imf.org/external/mmedia/view.aspx?vid=905963649001

[DCon]

The CPSU have voted to strike if there are pay cuts


Delegates at the Civil Public and Services Union annual conference in Athlone have voted unanimously to take industrial action if the Government introduces further pay cuts and to withdraw co-operation with reforms under the Croke Park Agreement.

The union, which represents the lowest paid civil servants, said such co-operation had been tied to a guarantee of no further pay cuts before 2014.

However, members had experienced significant cuts in their take-home pay as a result of the 2010 budget.


http://www.rte.ie/news/2011/0416/pay.html

[Apjp]

The CPSU have voted to strike if there are pay cuts




http://www.rte.ie/news/2011/0416/pay.html

Fair play. My dream is to have the railway workers on strike. thats when ye know tis for real. Its the sign of all influential general strikes when the country literally comes to a halt. closing the airports would be quite fun too :D not to worry da has a car and i can always get matthews when bus eireann take their few days picketing :D

[Baron von Biffo]

Fair play. My dream is to have the railway workers on strike. thats when ye know tis for real. Its the sign of all influential general strikes when the country literally comes to a halt. closing the airports would be quite fun too :D not to worry da has a car and i can always get matthews when bus eireann take their few days picketing :D

If you want to see the country brought to a halt then lobby the GRA to have the traffic corps apply the strict letter of the law to HGVs registered outside the jurisdiction. I have yet to see a foreign reg truck that meets DoE standards.

[jinnyjoe]

Looks like a heave in Finland against the euro and all it stands for including the bailouts,
http://www.rte.ie/news/2011/0417/finland.html

More trouble ahead??:confused: