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Posts tagged ‘Finance Minister’

Perfect Storm Brewing for Ireland’s Economy

By Global_Research

Caoimhghin Ó Croidheáin writes: “We are now mainly borrowing to pay interest on the burgeoning national debt”[1]

While much has been made recently of Ireland’s exit from the punishing EU/IMF bailout programme, Michael Noonan, the Finance Minister, has welcomed post-bailout ‘surveillance’. Dutch Finance Minister Jeroen Dijsselbloem, said Ireland would be subjected to ‘intensive surveillance’ “twice a year, but this would involve monitoring as supposed to new measures being imposed” because “under new European budgetary rules, countries leaving a bailout will be subject to extra attention until at least 75pc of the money owed is repaid.”[2]

The Taoiseach (Prime Minister), Enda Kenny, has even gone so far as to state that Ireland would exit the bailout without the safety net of a credit line. Unfortunately for him Ireland’s economic crisis will not go away that easily. The economic consequences of the bailout may be about to bounce back and hit him in the face. Interest repayments are already taking a huge chunk out of the economy and the Irish people will be paying back EU [EFSF and EFSM] loans until 2042 and IMF loans until 2023. A fundamental economic crisis is in the making.

In 2007 Ireland’s general government debt was €47.2bn. It is estimated to be more than quadrupled to €205.9bn by the end of 2013.  As the debt has grown so have the interest repayments. In 2012 the ‘underlying’ deficit (deficits excluding direct payments to banks) was €-13.5bn of which €-6.7bn was interest repayments showing that interest repayments grew to become 50% of the deficit compared to 2008 when the deficit was €-13.2bn of which €-2.4bn was interest repayments. [See table below]
UnderlyingDeficits[5]

[Underlying Balance = Primary Balance + Cash Interest + Prom Note Interest]

http://economic-incentives.blogspot.ie/2012/03/changing-nature-of-our-budget-deficits.html

Even the somewhat positive projections for 2014 show that all the money to be borrowed, €8.3bn, is to be spent on interest repayments.

Ireland’s low corporation tax of 12.5%, and therefore a low corporation tax take, means that ordinary taxpayers are expected to make up the shortfall. For example, in 2012, the combined figure for income tax and VAT was €25.35bn while corporation tax came to €4.22bn. [See table below]

Fiscal-Table1_2

full article at source: http://www.marketoracle.co.uk/Article43172.html

The Innocence of Double-Irish

English: Arms of Ireland depicted as a banner ...

English: Arms of Ireland depicted as a banner and in a manner like during the Kingdom of Ireland period. Based on File:Arms of Ireland (Historical).svg (Photo credit: Wikipedia)

by

Irish corporate tax policies issues have now penetrated (agt last) into the RTE newsflow – link here.  Of course, the most priceless reaction is, surprise, surprise, via our Minister Noonan:

“In the Dáil in recent weeks, Finance Minister Michael Noonan said: “The problem with the so-called ‘Double Irish’ from Ireland’s point of view is that it has that name. People think that something we do here gives rise to it. That is not the case.” Mr Noonan blamed tax codes elsewhere, including the way the US government treats certain tax arrangements.”

Yep, folks, that’s right, Irish law allowing dodgy entities set up off-shore to be tax exempt is, apparently, not Irish problem. Serves those Americans right, then…

full article at source: http://trueeconomics.blogspot.de/2013/02/122013-innocence-of-double-irish.html

Trichet says letters to Lenihan should not be published

DAVOS/SWITZERLAND, 29JAN10 - Jean-Claude Trich...

DAVOS/SWITZERLAND, 29JAN10 – Jean-Claude Trichet, President, European Central Bank, Frankfurt, speaks during the session ‘Rethinking Government Assistance’ in the Congress Centre of the Annual Meeting 2010 of the World Economic Forum in Davos, Switzerland, January 29, 2010. Copyright by World Economic Forum. swiss-image.ch/Photo by Remy Steinegger. (Photo credit: Wikipedia)

To day in the Irish independent we learn :FORMER European Central Bank President Jean-Claude Trichet said letters that he wrote to former Finance Minister Brian Lenihan in the run-up to the 2010 bailout should not be made public.

His comments follow a clamour from some Irish politicians and economists who believe the letters sent to Mr Lenihan contained threats that somehow forced him into a bailout. They now want the letters published.

Weekend media reports also suggested the letters contained threats but did not provide any quotations or evidence to back-up the assertions.

Without seeing the letters, it is impossible to know whether the ECB was simply expressing concern about the safety of the tens of billions of euro the bank pumped into the Irish economy or something more sinister. No media outlet, government minister or ECB president has ever published the letters and the Department of Finance and ECB’s freedom of information units have declined to release the letter

full article at source: http://www.independent.ie/business/irish/trichet-says-letters-to-lenihan-should-not-be-published-3220159.html

Comment:

Jean -Claud Tricher you have a nerve!

Anybody gullible enough to believe that this French civil servant is a friend of Ireland or has the Irish people’s interest at heart must now accept that this Insider unelected official is staunchly representing the interests of French and German Banks!

The ECB has its own interest at heart not Ireland’s!

We must now accept that we never had any real say in Europe and the giveaway slogans used by our own puppet politicians from the established political parties like we must be “at the heart of Europe” or our “European partners” or a union of equal trading nations is all bullshit!We have been shafted saddled with the debts of gangsters and gamblers who have friends in high places in Europe that have come to their rescue and have blackmailed the smaller nations of Europe (Like our own Ireland) into taking on their bad debts in a so called Bailout of Ireland . ! This anti democratic infestation of the European establishment is plain to see as Trichet is calling for the letters concerned in the above article be kept secret from the Irish people who  he has saddled with odious debts from his faceless money men pals.(see Crédit Lyonnais ) http://www.economist.com/node/1527367

Mr Tricked we are a democratic republic and we the people of Ireland have the right to see all correspondence on any and all aspects of the financial enslavement of our people

You are a jump up Pimp who has no mandate to impose your dictatorial ideals on our people ,so get lost somewhere else in Europe:

We the people of Ireland will take only so much crap from unelected self-serving officials like you!

Make no Mistake Tricket , his successor and the ECB are representing the interest of the big banks in Europe by forcing the toxic debts on to the shoulders of the taxpayers of Ireland and other small nations!

http://online.wsj.com/article/SB10001424052748703818204576206680101497562.html

Are we been softened up for the next austerity measures in the coming budget????

SLASHING the damaging bank debt burden, tackling the health budget and rampant unemployment all emerged as critical concerns as officials from the EU and IMF wrapped up their seventh mission to monitor progress under the Irish bailout programme yesterday.

Ireland is meeting 120 out of 120 conditions laid down by international rescue funds from the troika of the European Union, the IMF and the European Central Bank (ECB), officials confirmed, but the situation remains challenging.

The mission that ended yesterday marks the halfway mark in the EU/IMF bailout.

Rampant unemployment and overspending by the Department of Health were named as particular concerns by the so-called IMF-EU-ECB troika in a statement marking the end of their mission.

The officials also warn that stressed household budgets mean we can expect modest growth in the year ahead.

Real test

Finance Minister Michael Noonan said the real test

full article at source: http://www.independent.ie/business/irish/state-hitting-targets-but-troika-warns-on-jobs-and-spending-3167358.html

Eurozone finance ministers are due to approve the bailout package for Greece ( The real story)

Greece-1178

Greece-1178 (Photo credit: archer10 (Dennis) Busy)

Tonight, the Eurozone finance ministers are due to approve the bailout package for Greece. The MSM widely expects them to do so. As the earlier Slogpost today argued clearly, if they do, it will be because they can only keep their third-rate currency zone and anti-democratic Union going by dealing with crooked people as addicted to the gravy train as they are. Those supposedly representing their citizens in the Athens Government have, in turn, acquiesced in every increasingly bonkers Troika demand for austerity and repayment, because not to do so would take away their seedy access to the People’s money. My God, I’m sounding like a 1970s agitprot Trot. That’s how unpleasant this crew are.

I think a minority of the people in Brussels and Frankfurt know exactly what they’ve unleashed by letting Athens apply CACs to last week’s debt swap. One or two in Greece do, but they couldn’t care a fig anyway. Most of the Troughing Circus in Europe’s capitals have no idea what’s coming from out of Pandora’s derivatives box at all. This is because they are either ignorant or stupid, and in some cases both. But even in the near term, if any in their ranks are smiling at the thought of having nipped the regional crisis in the bud, they should take a look at what’s been happening down here on Earth since they let Venizelos and his mob go ahead to coerce investors.

With variations taken into account, you can buy four Greek euro bonds at the moment for the price of one. That there is a market at all has nothing to do with Greek recovery hopes, and everything to do with an innate madness in modern finance: for as a form of barter, everything now has to have a value. In banks and fund management rooms throughout the Globe, high-IQ idiots are already looking at new ways to variegate, slice and repackage junk and proffer it as a thing of value…..when in reality its value is nil.

full article at source : http://hat4uk.wordpress.com/2012/03/12/think-not-what-you-can-do-for-the-european-union/

Comment :

I came across this blog the other day and can only say I am delighted to have found this well informed source .Not only does he have an excellent understanding of the facts but he is not afraid to spill the beans so to speak on the gangsters in Greece and in Brussels .Now if only we had someone in Ireland ready to give us an inside track on the daily corruption occurring there, we might get the ordinary people to realize that they are been well and truly screwed .Just as you have dodgy politicians on the take in Greece we have the same gutless politicians in government on the make in Ireland .This is a wonderful source of the real news apart from  the crap we get from the established state run media .well done !

Eurozone leaders ‘call off Greece crisis talks’

The head of the eurozone countries has downgraded an eurozone finance ministers meeting on Wednesday, saying Greece has not yet given the necessary assurances about its austerity plan.

Ministers, who had demanded Greece find an extra 325m euros of savings, had been set to meet in Brussels.

But Eurogroup President Jean-Claude Juncker said the talks would be replaced by a conference call.

He said technical work with Greece was still needed “in a number of areas”.

full article at source: http://www.bbc.co.uk/news/business-17034677

 

Comment:

Is Democracy dead in the EU?

Well the Greeks must be now wondering what in the hell is going on it seems that the big boys in Europe are trying to force the Greeks out of the euro how much more humiliation can the Greeks take there are been told “We don’t thrust you and we don’t want you” The tone has certainly changed, dictates are coming thick and fast from Germany! What happened to a Community of Independent Nations engaged in free trade with each other? It is now clear other countries have a lot more to say how things are done and others do not. It is now clear that Germany along with its French poodle is the real master of Europe and the rest of us are the slaves forced to do its bidding!

 

 

AIB Toxic Bank looking for more gravy!

AIB Bank Centre, Dublin 4, Ireland

Image via Wikipedia

The Finance Minister says AIB has asked to pay its new chief
executive more than the Government-imposed cap of €500,000

Finance Minister Michael Noonan has confirmed
that AIB has asked to pay its new chief executive more than the
Government-imposed cap of €500,000.

Mr Noonan, speaking in Washington where he is
attending the annual meeting of the IMF, said the salary cap remains government
policy and AIB would have to make a particularly special case for that to
change.

He said the salary cap was already more than twice the salary of the Taoiseach and he believed it is a reasonable limit. Mr Noonan said he has only just received the request and would consider it in due course.

Comment:

This “request” is an affront to every Irish citizen. The board of AIB have the cheek to even ask this of the Minster .They should all be in Jail .Sticky Dick Spring and Declan Collier are supposed to be the public interest appointed directors. This request must have been passed by them .So to my mind this proves these two gombeens have gone native accustomed to the plush trappings of wealth and power these two snouts in the trough
should now be kicked off the board of AIB.

They are so out of touch with the daily struggle ordinary citizens have to enduring . Trying to convince the public that 500,000 Euros isn’t enough payment for any job is just taking the Mick .AIB has already received over 20 billion in public money and Anglo Irish Bank now
tells us that it will only need to pay out 25 billion so you see that in fact Allied Irish Bank could cost the taxpayers of Ireland a lot more that Anglo..Most people do not know it but Allied Irish Bank was in fact worse that Anglo and is in a far more serious situation with regards to the eventual cost to the Irish taxpayers. How would you react if it was a director of Anglo Irish Bank requesting a salary of this magnitude? This Toxic corrupt den of thieves should be closed down  period!

e-mail sent to the Minster this morning

To .The Finance Minister Michael Noonan.

Dear Sir.

It is with anger and frustration I take pen to paper this morning to call upon you to rebuff this latest attempt by Allied Irish bank to suck the Irish taxpayers dry.

This “request” is an affront to every Irish citizen. The board of AIB have the cheek to even ask this of the Minster .They should all be in Jail .Sticky Dick Spring and Declan Collier are supposed to be the public interest appointed directors. This request must have been passed by them .So to my mind this proves these two gombeens have gone native accustomed to the plush trappings of wealth and power these two snouts in the trough should now be kicked off the board of AIB. They are so out of touch with the daily struggle ordinary citizens have to endure.

Trying to convince the public that 500,000 Euros isn’t enough payment for any job is just taking the Mick .AIB has already received over 20 billion in public money and Anglo Irish Bank now tells us that it will only need to pay out 25 billion so you see that in fact
Allied Irish Bank could cost the taxpayers of Ireland a lot more that Anglo. I
am incensed at the apparent lack of understanding and out of touch with reality
of the current board of this toxic Bank .

Your government is shutting down A&E services, cutting social services and increasing taxes, introducing new tolls and cutting special needs services to our children. If you give into these gangsters you will be inviting massive public disorder and unrest on the
streets and at 55 years I would have no problem parking myself outside the Dail
on hunger strike if necessary to stop this blatant attempt to continue to bully
this nation into giving these gangsters any more of our money.I expect I wont be there on my own for long as the country is really pissed off with this bunch .

The citizens of Ireland have had enough and we want to see those responsible for this financial meltdown go to jail.

Thomas Clarke

Greece budget talks see unexpected halt

By William L. Watts,
MarketWatch

FRANKFURT (MarketWatch) — Talks between the Greek government and
its bailout partners — the European Union, the International Monetary Fund and
the European Central Bank — were put on hold Friday, adding to worries over a
potential default.

News reports said the talks had been suspended due to a dispute over the
country’s ability to meet deficit targets, but Finance Minister Evangelos
Venizelos told reporters in Athens that the break in talks between the
government and the “troika” had been scheduled to pause and would resume in 10
days.

In a joint statement, the European Commission, the IMF and the European
Central Bank said their mission team had made “good progress” in their fifth
review of Greece’s compliance with the bailout. The quarterly reviews are
required ahead of the disbursement of billions of euros in bailout loans.

full article at source:http://www.marketwatch.com/story/greece-budget-talks-see-unexpected-halt-2011-09-02

Greece : Free for all Grab?

by Tyler Durden

One of the biggest stories this morning is that European cohesion and solidarity
is about to crumble after it was disclosed that Greece was pursuing a private
deal with Finland in which Greece promised to collateralize Finnish
contributions, in essence eliminating Finland’s contribution to the Greek
Bailout round 2. As Kathimerini reported, “Greece and Finland agreed on Tuesday
to virtually cancel the latter’s participation in the former’s second bailout
package, following three days of negotiations between Finance Minister Evangelos
Venizelos and his Finnish counterpart Jutta Urpilainen. Finland’s share in the
109-billion-euro package amounts to about 1 billion, which Helsinki will pay to
Greece but Athens will repay it through a new loan contract to be signed for
this purpose and which will be valid for the next 25 years (likely to be the
maturing period of the new loans, too). This means in practice that
Finland’s contribution to the new package will be returned in full and deposited
in a special account to be created by the Finnish government
.” End
result is that everyone else has immediately come demanding the same treatment:
first the Austrians, next the Dutch, and last the Slovenians. And what happens
if Finland backtracks on its collateral demand: will it back out of the Greek
bailout as well? Or, if Finland digs in, and all the non-German countries follow
suit, will Germany say Enough and tell Europe (and China) to fix its own
problems?

full article and source here:http://www.zerohedge.com/news/greece-threatens-unwind-second-bailout-agreeing-finland-collateral-demands

Greece May Not Complete All Asset Sales

By Reggie Middeleton

Here’s a surprise that many may not have expected, Bloomberg reports Greece May Not Complete All Asset Sales

Greece’s deputy finance minister, Pantelis Economou, said the country won’t manage to sell everything on its list of planned state-asset sales and real- estate developments. “We will sell a lot less than planned,” he told lawmakers yesterday, according to a transcript posted on the Parliament’s website.

Greece aims to raise 50 billion euros ($69 billion) through asset sales and property developments by the end of 2015, part of a package of fiscal measures demanded by the European Union and the International Monetary Fund in exchange for financial support. Parliament approved the measures in two votes at the end of last month…

“Selling state holdings to reduce Greece’s debt is a necessary condition to get what we are entitled to,” Economou told lawmakers. He added that eliminating tax evasion can “buy time” for Greece and help to meet revenue targets through 2015, according to the transcript.

The Finance Ministry announced the board of the agency that’s been set up to supervise the asset sales. The program includes plans to sell stakes in Public Power Corp SA (PPC) and gambling company Opap SA (OPAP), as well as Greece’s two biggest port operators and banks.

Now, here’s the kicker…

 Economou said there isn’t enough investor interest in the assets for sale as “credit default swaps and spreads are the kinds of thing they have their eyes on.” Concrete assets are “riskier,” he said.

Methinks Mr. Economou (what irony is there in an name???) may be missing the forest due to tree bark irritants in his corneas.There will be plenty of investor interest in hard asset sales if said hard asset sales were priced realisitically and with true price discovery enabled. The problem is that that’s just not the case. The proforma asset sales numbers proffered by the Greek government were ridiculously optimistic, and that was before said asset’s market prices tumbled off of a cliff the 2nd and 3rd times. As it stands now, CDS and are easier to price than Greek assets with cooked books. How cooked? Refrerence

  1. Once You Catch a Few EU Countries “Stretching the Truth”, Why Should You Trust the Rest?
  2. Lies, Damn Lies, and Sovereign Truths: Why the Euro is Destined to Collapse!

Now, let’s reference the biting piece that directly addressed and forecasted todays Greek asset sale problems over a year ago, Greece’s Circular Reasoning Challenge Moves From BoomBustBlog to the Mainstream

Full article and source :http://boombustblog.com/BoomBustBlog/Greek-Asset-Sales-Fall-Short-As-We-Virtually-Guaranteed-They-Would-In-Spring-2010.html

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