Record gap between Irish and German borrowing costs


The gap between Irish and German borrowing costs reached record levels at lunchtime today. The gap has risen above five percentage points for the first time ever on bond markets. The yield on Irish 10-year bonds rose to close to 7.6pc. At the same time German bunds sit below 2.5pc. The spread between Irish bonds and the German bund has widened to 515 basis points. The eurozone periphery countries of Portugal, Greece and Ireland are under pressure from the possibilities of permanent mechanisms for debt crisis resolution. The latest sharp sell-off of these periphery euro zone bonds began on Friday after EU proposals on debt restructuring raised the possibility of…

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OECD tells govs to balance consolidation and recovery

gurria angel oecd

Specific budget rules and independent financial watchdogs will ensure effective consolidation measures, according to the OECD. According to the OECD, governments should seek to strengthen the cost-effectiveness of expenditures that enhance growth, in areas such as healthcare, education, innovation and infrastructure development. However, the challenge for monetary authorities will be to exit the exceptional stimulus without exacerbating the fragility of financial markets. The pace of global recovery has slowed in the second half of 2010 and public debt in most countries is set to hit an all time high, the OECD notes in its economic assessment, published today ahead of the G20 Summit in Seoul. The report projects that average…

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40.4bn in Irish exports in Q3

Good growth in merchandise and services exports brought total Irish exports for the third quarter to €40.4bn, marking a 9.3pc increase on last year. The leap in exports was driven by an aggressive 12.8pc growth in merchandise exports, according to the Exporters Association (IEA) third quarter review. The Association’s chief executive John Whelan said the export effort continues to show Ireland the “way out of the recession”. The review said that merchandise exporters gained from a broadening out of the growth across most of the main international trading markets. Exchange rate competitiveness and continued buoyancy in global trade also assisted the acceleration in export growth. Whelan said the euro exchange…

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Ireland number 1 for FDI

Barry O'Leary, chief executive, IDA

Ireland ranks as the number one global destination for jobs by inward investment per capita, according to IBM’s Global Location Trends Report. The new survey reveals Ireland is placed ahead of other leading Foreign Direct Investment (FDI) locations including Singapore, Hungary and the Czech Republic. About 170 jobs per 100,000 citizens were created as a result of foreign businesses investing here, according to the report. Despite the recession and dire state of the public finances, Ireland has moved up one place to ninth for estimated total jobs in research and development. The country was also placed 10th by estimated jobs in business support services – a massive leap as Ireland…

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Headland Archaeology to create 35 jobs

Batt O'Keeffe with Colm Moloney and Teresa Bolger

Headland Archaeology today officially launched an office in Dublin, adding to its Cork, Galway, Belfast, Edinburgh, Glasgow and London locations. The new office will create five new jobs immediately, with a further 30 roles expected over the next 12 months. The company, which supplies commercial archaeology services to the UK, Ireland and Europe, said the establishment of a permanent office in Dublin was “the next logical step”. Minister for Enterprise, Trade and Innovation Batt O’Keeffe attended the launch this morning and said that Headland captures “Ireland’s strong entrepreneurial ethos by fusing the past with the future in a new paradigm of innovation”. Managing director, Colm Moloney welcomed the minister to…

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Trichet calls for tougher sanctions for rule-breaking members

In what seems an ominous warning to countries like Ireland, European Central Bank president Jean-Claude Trichet has suggested that Eurozone members that break the region’s rules on public finances should be excluded temporarily from Europe’s political decision-making. In a controversial interview with the Financial Times , Trichet said such a move would be a “quantum leap” in the governance of the monetary union, and might be what was required to avoid economic crises like that caused recently by Greece. While Trichet has always rejected the idea of any Eurozone member actually been thrown out, he did tell the FT that temporary suspension of voting rights was “something that should be explored”. On…

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