EC Winter 2012 Review of Irish Programme

The details of the Commission’s quarterly reviews tend to get into the public domain in draft form a couple of weeks before their official release.  The ninth staff review has now been published.

7 replies on “EC Winter 2012 Review of Irish Programme”

A Proposal:

What europe needs is ability to spend what is needed to restore full employment, while at the same time make sure individual european governments do not have free hands to spend howevermuch they want.

Disciplining role should be taken away from the markets, period. How much to spend should be decided maybe in ECOFIN meetings or something similar, but after that decision is takes ECB could very well fund as much spending as is needed to carry out that objective.

And if some people are scared that central bank financing of deficits would lead to hyperinflation because of ‘money multiplier’, would it not be much more sensible to set lending limits to the bank directly, trough regulation, that starve whole economic system because of this fear?

So lets say to financial institutions: your assets (i.e. loans) next year can be 105% what they are this year, period. You can control bank lending by regulation if you want to.

Slightly off topic but could ultimately affect little old Ireland.
From the Telegraph..
“16.20 If you have more than €100,000 (£85,000) in the bank and you live in a country that’s in danger of being rescued by international lenders, listen up, because your savings probably aren’t safe.
The European Parliament’s lead negotiator on rules for dealing with failing banks said that parliament would likely back legislation imposing losses on wealthier depositors.
Gunnar Hokmark, a Swedish conservative, said most deposits would not be protected under the proposals. But, he added:
There is a very clear exception for all deposits below €100,000.
Talks are underway to finalise EU rules on crisis-hit banks following the bailout of Cyprus, in which the savings of all depositors were originally going to be raided.
The plan was later changed amid a massive public backlash. The European Parliament’s backing is needed for any proposals to become law.”

I think it’s called Financial Repression.

Table 2 presents a good summary of income and expenditure.

On the day that’s in it, one should note that ELG fees are forecast to fall from 1025 million to 433 million, a fall of 592 million.
Mr Boucher will be taking his slice of that today, with government approval or is it government acquiescence!

The interest cost is becoming very high. Why would the interest charge estimate have increased from the budget figures? The interest (govt and PN interest net) seems to have increased by ~€200.
Is this because of the difference in interest rate between the PN and the bonds that replaced the.

Which category of expenditure does the Oireachtas fall under, social protection or other!


@ JR

“The interest cost is becoming very high. Why would the interest charge estimate have increased from the budget figures?”

Because we’re back in the markets, simple as that, we’ve been able to borrow more at this point than we expected.


That great bastion of socialism in the form of Dermot Desmond no less has said of this man :

“Mr Boucher was one of the most senior bankers in the organisation, as a director, chief executive of retail financial services, a member of the group risk policy committee and of the group investment committee.“There has to be a direct correlation between Mr Boucher’s appointment to these senior positions and the excess lending policies of the bank.“How did Mr Boucher and others within the bank view the warnings of the Central Bank of Ireland in 2004 concerning the overheated residential property market?”

Personally I wouldn’t have this man run a sweet shop let alone a bank. How the larger shareholders in the bank can stomach this man at the top table is simply beyond belief when his decisions as head of Commercial Lending from 2003 until this day have lead to the banks share price demise by c99%.

I mean what does it actually take to lose a job in Bank of Ireland? Lets get this straight – the overwhelming majority of your lending decisions end up in NAMA, the courts, with receivers or liquidators – the share price declines by 99% and long term shareholders turn a blind eye !! I’m at a loss to understand the latest turn of events and even more mystified as to how the CBI could have given this man a Fitness and Probity clean bill of health.

Does Richie Boucher know something that the rest of us should which has the Govt and all its State associates by the balls ? Something doesn’t make sense here.

I know I would have great pleasure booting this man up and down the main street of my home town morning, noon and night. A buffoon of the highest order is now made to look like a saviour – pass me the bucket. And yes it’s personal – his decisions have effected me and most of the citizens in this State in a very personal way.

Take a hike Ritchie and do us all a favour.

To answer your question “No”.

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