Irish Bailout Branded Appalling 'Sell Out'

The main opposition parties have termed the €85 billion bailout from the EU a "national sell out" and an "appalling deal".

The Government have been leveled with a swathe of criticism after releasing the details of the bailout, which will see Ireland paying a 5.8% interest rate on the huge loan, despite winning an a limited extension to 2015 before needing to return to a deficit level of 3% of GDP.

Yesterday, Labour Leader Eamon Gilmore said the deal announced yesterday evening was a "national sell out" that would leave the citizens of Ireland with a "crippling level of debt" for years to come.

"The rate of interest accepted by Fianna Fail is penal and is significantly in excess of the rate that Greece was required to pay. The Irish people will now have to come up with annual interests payments amounting to billions of Euro."

Meanwhile, the response from Fine Gael was no less derisive, with the party's Finance Spokesman Michael Noonan describing the outcome as "a hugely disappointing result for the country".

"It's hard to imagine how this deal could have been much worse. People are right to feel frightened, and worried about the future, when our own Government has sold out the country on such lousy terms."

Mr Noonan added that the Government was "cleaned out" in the negotiations and had not acted in the best interests of Ireland.

"At the very least we could have expected a low rate of interest on the loans, EU agreement on a jobs and growth package, and agreement to share the cost of rescuing the banks with the bond holders. The Government came away with none of these."

Sinn Féin President Gerry Adams added to the negative reaction, saying the Government had negotiated a "terrible deal" and said: "The 5.8% interest rate is unaffordable. The decision to force the state to take €17.5 billion out of the Pensions Reserve Fund to pour into black hole that is our banking system is a disaster.

"Sinn Féin had proposed €7 billion be taken from the Pension Reserve Fund for a jobs stimulus programme. The Government refused to do this. But now they are prepared to rob the pension fund to give a digout to the bankers."

Speaking yesterday after emerging from negotiations in Brussels, Brian Lenihan said the financial assistance offered to Ireland to deal with the economic crisis was on the same terms as assistance offered to Greece.

He claimed the interest rate to be paid by Ireland is only proportionately higher due to the extra length of time the money is being borrowed.


Related Northern Ireland Business News Stories
Click here for the latest headlines.

04 September 2001
Bank likely to leave interest rate unchanged
The Monetary Policy Committee (MPC) of the Bank of England are likely to leave interest rates unchanged at 5 per cent. The Committee are due to begin their latest two-day meeting amid a spate of calls for another cut in the interest rate.
09 January 2020
NI Firm Revamps Ireland's Largest Shopping Centre
Local firm GRAHAM has begun working on a €9.3 million revamp of Blanchardstown Centre, Ireland's largest retail development. Construction carried out by the Co Down headquartered firm will see the centre welcome eight new stores and unveil a modern, reimagined space upon completion in November 2020.
14 August 2001
Inflation rate fall may herald a further interest rate cut
Speculation is growing that a fall in the underlying inflation rate, down to 2.2 per cent, may give the Bank of England’s Monetary Policy Committee further room for manoeuvre to lower interest rates. Continued severe pressure on manufacturing industry has prompted further calls from industry leaders seeking another cut in the UK interest rate.
08 January 2004
UK Interest rates sticks at 3.75%
As expected, the Bank of England has decided to hold the base rate at 3.75% today. The Bank's Monetary Policy Committee (MPC) opted to hold the rate following a quarter point rise in December - the first rise in four years. However, analysts are continuing to warn consumers that rises are imminent in the year ahead.
07 March 2011
IMF Announce Interest Cut For Ireland
Despite an announcement to the contrary by the German Chancellor on Thursday, Ireland's bailout interest rate is set to decrease.