Economy
President says EU in survival crisis
EU Council President Herman Van Rompuy said today that the eurozone is in a “survival crisis” but is confident the EU will overcome its debt issues. He said EU members must work together to get through the crisis. He added that national interests could not come ahead of European interests. “We all have to work together to survive, with the eurozone, because if we don’t survive with the eurozone, we will not survive with the European Union,” said Van Rompuy. The president’s comments come before the euro zone’s 16 finance ministers (Ecofin) meet this evening in Brussels where Ireland remains under pressure to accept funding support from the EU. Much…
Read MoreProblems are with the Irish banks, not Government – Rehn
Speaking ahead of today’s vital meeting of Ecofin, the eurozone’s 16 finance ministers, Olli Rehn has said that Ireland is working with the EU, the International Monetary Fund (IMF) and the European Central Bank to solve the country’s banking crisis. He said although the two were connected the “real problems are in the banking sector” and not with the Irish government. The EU commissioner added, “We have a very strong focus on the banking sector.” Earlier today, EU Council President Herman Von Rompuy said all EU countries needed to work together and not put national interests first. Many interpreted this as further pressure on Ireland to accept a bailout from the European Financial…
Read MoreBanks should be allowed fold says ECB’s Weber
Axel Weber, policy maker at the European Central Bank said that banks should be allowed fold in order to avoid complacency and ‘moral hazard’ among bankers. Speaking at the opening of Euro Finance Week, he said, “The relevant instrument in this context is a restructuring mechanism that allows for a wind-down of systemically-relevant banks without overburdening markets.” During his speech, Weber also supported the idea of issuing special bonds which would convert to equity in the event of a crisis. He said these were one option for large banks that play a role in global finance. Calling for a more stable banking system, the German banker stressed the need for…
Read MoreRecord 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…
Read MoreOECD tells govs to balance consolidation and recovery
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…
Read More40.4bn 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…
Read MoreIreland number 1 for FDI
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…
Read MoreHeadland Archaeology to create 35 jobs
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…
Read MoreTrichet calls for tougher sanctions for rule-breaking members
ECB President Proposes Exclusion of Rule-Breaking Eurozone Members from Political Decision-Making 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. A Quantum Leap in Eurozone Governance Trichet’s remarks, made in a controversial interview with the Financial Times , advocate for a temporary suspension of voting rights as a potential consequence for countries that fail to adhere to Eurozone rules. While he has consistently opposed the notion of outright expulsion, Trichet believes exploring the suspension of political influence could be a viable option. Assessing the…
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