Ironically, the calls for non-CAP spending are likely to be particularly strident in the areas of climate change and energy security. The EU has allowed itself to be suckered (for the first time) into providing investment funding in this area in the European Energy Programme for Recovery (EERP) - as part of its fiscal response to the global downturn. This is an area where an appropriate mix of competition, regulation and taxation policy could deliver the necessary private sector investment, but the Commission has lost the plot on the programme to complete the internal markets in electricity and gas. EU funding (combined with national co-funding) is likely to crowd-out this investment and lead to sub-optimal otucomes. In addition, allocating extra funding to this area will reduce the allocation to other areas that have a genuine, and beneficial, EU dimension and that might not be realised by national government or private sector involvement.

I suppose it was ever thus…

I can only quote what RTE say:

“Dublin’s ISEQ index of Irish shares closed down more than 6.5% this evening, with the two main banks suffering heavy losses. Traders said this was partly due to worries that the launch of the National Asset Management Agency could take several more weeks, leaving Bank of Ireland with not enough time to raise new capital this year.”

Another triumph for IrishEconomy.ie.

It seems the French want the current Tanaiste to lead the charge to protect the CAP.