See the Republic of Ireland’s national debt mount up, a measure of the legacy the Irish Government is in the process of bequeathing to the children of Ireland:
The FINANCE DUBLIN Irish Government Debt Clock was set at midnight on June 30th 2009, when it was €65.278 billion.
(25 August): S&P downgrade disputed by NTMA, but, the main problem – non banking bailout costs – remain
The most negative aspect of the S&P re-rating on August 24th 2010 is the ‘outlook negative’ aspect, rather than the actual rating, the aspect the NTMA focusses on in disputing the validity of the downgrade. Here’s what S&P say on this aspect: “The negative outlook reflects our view that the rating could be lowered again if–as a result of its support for the financial sector or due to a more sluggish economic recovery (emphasis added)–the government’s fiscal performance improves more slowly than we currently assume.”
“Conversely, the outlook could be revised to stable if the Irish government looks more likely to achieve its fiscal target for the underlying general government deficit of less than 3% of GDP by 2014, or if the banking sector stabilizes more quickly and at a lower fiscal cost to the government than we now think likely.”
As argued many times in this page, since the Finance Dublin Debt Clock was set up in July 2009, while the cost of the banking bailout is admittedly very serious, the much more serious issue is the excessive cost of the state in the economy, which currently sees the national debt as rising by some €18 billion a year. This compares with a estimated total net (once-off) cost of the banking bailout of €25 billion to €30 billion.
Continued emphasis on the (admittedly serious) cost of the banking bailout, Anglo-Irish bank etc., at the expense of focus on Ireland’s unsupportable current and capital spending Budget (now costing 5.35 per cent p.a. in the bond markets to fund) will continue to put Ireland’s credit rating unfavourably under the microscope.
As a close reading and assessment of S&P’s statement shows, a positive result could be achieved by a decision from the Irish Government that it will address the issue of Ireland’s deteriorating credit ratings head-on in the forthcoming Budget by going further than previously announced in cutting down the spending programmes for 2011, 2012, on capital and current account than the (now clearly inadequate) €3 billion it has previously signalled for the 2010 Budget – i.e. bringing forward its fiscal consolidation plan.
Such would be consistent with the principles enunciated by the Minister for Finance in his Beal na mBlath speech on August 22nd. Lenihan’s statement that “We know from the 1980s that unless businesses are confident about the Exchequer’s long term position, they will not create new jobs” shows that this awareness is there – and that policy framed to underpin business and household confidence is key to (a) recovery in tax revenues, which springs from expanded employment primarily, and (b) a stabilisation in the property market, upon which the financial cost of the banking bailout will crucially depend.
At the above rate we will be well over the 100,000,000,000 Billion by Christmas so go and get your Christmas shopping now you might not be able to afford it at Christmas !
Any coming budget savings in the 2011 budget will go directly into the Anglo Irish Bank Black Hole and we will need another emergency budget sometime next year when we finally get this shower of gangsters out of government, but I fear the damage will be complete by then! They will by then have helped their pals get everything worth taking of shore and we the people will be left saddled with the bad debts and all the bills
Any announcements coming from Brian Clown or Brian Lenihan must be taken with a pinch of salt! the Twiddle Dum and Twiddle Dee politicians are the last people we should rely on for leadership, after nearly two years since the bank crises these two jokers are only now coming to the realization that a bailout of the toxic toilet Anglo Irish Bank wasn’t a great idea after all and the billions powered down that toxic toilet was better spent in retraining the enormous dole queues
Almost two years and 22.5 billions, Clown and Lenihan still cannot tell the Irish people where this enormous amount of money went, specifically who got this money and why?
Why is it taking this long to say exactly how much has this Toxic toilet has in bad debts? How many staff has been recruited to this toxic toilet since the financial crises started and why??
Since the announcement of a split of Anglo Irish are we now going to have double staff levels, a second management level, at double the costs, for the same totally discredited bankrupt bank?
Since the work lode will now presumably be less in one or the other good bank, bad bank can we the taxpayers expect a reduction a claw back of the pay rises given to this surplus staff now???
When are we going to see prosecutions of the directors of the banks who have effectively stolen from every citizen of this country? And when can we expect Clown and lenihan resign for the gross mishandling and incompetence of the economy? Since they have effectively destroyed our countries financial independence and with it our soverne independence, they are guilty of economic terrorism
Neither they, nor their cronies should be allowed to benefit in any shape or form from these crimes that includes running off into the sunset with enormous pensions.
it’s time for a change in Irish politics and we must start with a system change this means a constitutional change to make these people personally accountable for their actions whilst in the service of the citizens