Belfast Telegraph

Government accused over bailout

The bailout deal negotiated by the Government amounts to a national sell-out that will leave the country crippled with debt, opposition politicians have claimed.

Labour Party leader Eamon Gilmore said the potential 5.8% rate of interest to be paid on the IMF/EU loans did not represent a fair bargain.

"The Fianna Fail government has shown no backbone, no negotiating ability and no authority," he said.

"The EU and the IMF have had a walk-over in negotiations with a broken and demoralised government, that is serving out its notice and which has neither the political mandate or the moral authority to conclude such a deal.

"The problems we have been experiencing are the fault of the Irish Government, not of the Irish people. Ireland has obligations as a member of the eurozone to fix the problem, but European solidarity is a two-way street and this government has failed to secure a fair bargain for Ireland."

He added: "This a sad and sorry day for our country and the direct result of Fianna Fail mismanagement and irresponsibility."

Sinn Fein president Gerry Adams said the Government had struck a terrible deal. He said: "The 5.8% interest rate is unaffordable. The decision to force the state to take 17.5 billion euro out of the Pensions Reserve Fund to pour into the black hole that is our banking system is a disaster."

The west Belfast MP, who is to resign his seat in Northern Ireland to stand in the Irish Republic at the general election, added: "The costs of this deal to ordinary people will be deep and will result in hugely damaging cuts to public services, social welfare and wages."

But the Irish Business and Employers Confederation (IBEC) welcomed the announcement.

IBEC Director General Danny McCoy said: "The agreement provides much-needed certainty around Ireland's public finances and the path to recovery. The confirmation that Ireland's corporate tax rate will remain unchanged is particularly important and will ensure that the country remains an attractive location for business."


From Belfast Telegraph