Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Ebola virus : Liberia shuts most border points

Read more

MEDIAWATCH

"What would you do?"

Read more

DEBATE

Too Late for Sanctions? Pressure Mounts on Russia over Ukraine (part 2)

Read more

DEBATE

Too Late for Sanctions? Pressure Mounts on Russia over Ukraine

Read more

FOCUS

As France’s Carrefour pulls out, what next for India’s retail market?

Read more

#TECH 24

Internet of Things

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014 (part 2)

Read more

REPORTERS

Halal tourism on the rise

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

  • Israel warns of ‘prolonged’ campaign in Gaza

    Read more

  • In pictures: From Gaza to Mosul, bittersweet end of Ramadan for Muslims

    Read more

  • France offers asylum to Iraqi Christians

    Read more

  • Tripoli threatened by out of control blaze

    Read more

  • Moroccan police arrest French al-Qaeda recruiter

    Read more

  • Russia ordered to pay Yukos shareholders over $50bn in damages

    Read more

  • French mayor files complaint against US father who risked kids’ lives on Mont Blanc

    Read more

  • French footballer Griezmann headed to Atletico Madrid

    Read more

  • Luc Besson’s sci-fi thriller ‘Lucy’ tops US box office

    Read more

  • Video: Slaviansk mourns mass grave victims

    Read more

  • France honours those lost on Air Algérie Flight AH5017

    Read more

  • Video: Ethiopia turns to wine to boost image, economy

    Read more

  • Thousands gather in Marseille in support of Israel

    Read more

  • As France’s Carrefour pulls out, what next for India’s retail market?

    Read more

  • Liberia tightens border controls to curb Ebola outbreak

    Read more

  • The centenary of Austria-Hungary’s calamitous last hurrah

    Read more

  • Nibali joins elite group with Tour de France win

    Read more

Europe

Ireland ready to exit bailout in December, PM says

© AFP

Text by News Wires

Latest update : 2013-10-13

Ireland’s Prime Minister Enda Kenny (pictured) told a crowd at his party’s rally on Saturday that the country was ready to be the first euro zone nation to exit an EU-IMF bailout in mid-December. "The economic emergency will be over," he said.

Ireland will become the first euro zone country to exit an international bailout in mid-December and may do so without a financing backstop from its European partners, the ruling party announced at a triumphant rally on Saturday.

Prime Minister Enda Kenny told a gathering of his Fine Gael party that “the economic emergency will be over” when the country exits its 85 billion euro bailout on Dec. 15, confirming the official date of the exit for the first time.

“There’s still a long way to go. But at last, the era of the bailout will be no more,” Kenny said to loud applause.

Earlier, Finance Minister Michael Noonan gave the clearest signal yet the country may exit without the insurance policy of a precautionary credit line and said he expected to comfortably beat EU deficit targets next year.

Refusing to take a precautionary credit line would block Ireland from accessing the European Central Bank’s as-yet-unused Outright Monetary Transactions (OMT) programme of government bond purchases.

But it would also reduce the conditions and close monitoring from European officials and bolster the government’s claim to have restored the country’s economic sovereignty lost by the previous government.

“Two years ago, I addressed the Irish people and said that I wanted to be the taoiseach who would retrieve our economic sovereignty and independence,” said Kenny, using the Irish term for prime minister.

“This goal is now within our grasp,” he said.

Left-leaning opposition party Sinn Fein criticized Kenny as celebrating prematurely and said he was out of touch by suggesting that the austerity of the past three years was working for Ireland.

“Try telling families at risk of losing their homes that austerity is working,” Sinn Fein leader Gerry Adams said in a statement. “Try telling the 415,000 people on the live (unemployment) register or the 300,000 that have emigrated in the last four years.”

The coalition government of Fine Gael and the left-leaning Labour Party is due to release a budget next week that will cut the budget deficit by a third and contain a 2.5 billion euro package of spending cuts and tax hikes, less than the 3.1 billion euro package originally planned.The budget deficit will fall to 4.8 percent next year from 7.3 percent in 2013, well within targets agreed with the EU, Noonan said. The economy will grow 0.2 percent this year before bouncing back to growth of 1.8 percent in 2014, his department said this week.

The finance minister’s suggestion that Ireland may pass on a precautionary credit line came a day after EU Economic and Monetary Affairs Commissioner Olli Rehn said Ireland had a “very good chance” of exiting its bailout without one.

The government had said last month it would seek a 10 billion euro ($14 billion) precautionary credit line from the euro zone to insulate it against market shocks.

“IMF countries that exited bailout programmes in the past had a kind of precautionary programme attached ... but we have a very significant backstop because the NTMA (national debt agency) is carrying cash buffers of about 25 billion euros,” Noonan said in a speech to the conference.

“The cash buffers have given us the kind of backstop that we need,” he said.
The National Treasury Management Agency said last week it would not tap bond markets in the final quarter of the year, a move that may slow Ireland’s return to the “regular market access” it would need to access the OMT.

(REUTERS)

Date created : 2013-10-13

  • Ireland

    Dublin doles out more austerity with 2013 budget

    Read more

  • Europe

    New data signals Eurozone recession may be over

    Read more

  • ECONOMY

    IMF cuts global economic growth forecasts

    Read more

COMMENT(S)