Ireland

Possible 2013 Bailout for Ireland by EU

Crop of Joan Burton at launch of the Labour Pa...

Crop of Joan Burton at launch of the Labour Party’s 2011 General Election campaign. (Photo credit: Wikipedia)

Europe moved this week to award a new sheathe of financial dispensations to Greece in a converted effort to avoid the country falling into an abyss. All eyes are now on Ireland only days before another harsh budget in Dublin.

Ireland will scour the euro zone’s new Greek aid deal for anything that would help Dublin’s efforts to pull free from its own EU/IMF bailout as scheduled next year, Finance Minister Michael Noonan said on Thursday, Nov. 29, according to Reuters.

The budget will be Ireland’s sixth austerity budget since October 2008 and Noonan said while people were expecting a very tough budget, the government would make sure it was fair and would impact most on those who can afford it.

The development emphasized the Irish Government’s disappointment to prise a debt-relief deal from its sponsors in the euro zone. Ireland and its “business-friendly” tax regime have come in for close scrutiny as a result.

The European Union’s tax commissioner, Algirdas Semeta, is expected to publish proposals to deal with unfair tax competition between member states, which, according to some estimates, costs the union €47 billion, according to the Irish Times.

The timescale for a deal is likely to be quite extended, with many now linking an Irish deal to the introduction of European-wide banking regulation, which is not really expected to be in place until 2014.

The next step in this delicate process is a paper from the troika, due before the end of the year.

According to The Belfast Telegraph, helping unemployed young people into jobs will be at the heart of Irish efforts during the country’s presidency of the European Union, social protection minister Joan Burton said.

The guarantee is expected to ensure that 18 to 24-year-olds are given a job offer, an apprenticeship, training or combined work and training within four months of becoming unemployed, organisers of a special Dublin conference on the issue said.

Minister Burton said: “Building a strong Youth Guarantee framework to get unemployed young people into training, internships and employment will be at the heart of Irish efforts during our presidency of the European Union.”

“Getting European support through the ESF (European Social Fund) and other sources for this policy will be a key issue in Irish negotiations over the coming months.”

The Irish Government remains on track to exit the EU-IMF programme next year and “send the troika home”, Tánaiste and Labour Party leader Eamon Gilmore said yesterday, according to the Irish Times.

“Our intention is to be out of the programme by the end of 2013, to send the troika home, to recover control of our own financial affairs. That was the objective the Government set itself when [it] was formed in February of last year and we’re on target to meet that deadline.”

Ireland was granted an EU bailout worth 85 billion Euros in 2010, to rescue its heavily indebted banks. The package included a £3.2 billion loan from the UK.

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