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Image header Agence Europe
Europe Daily Bulletin No. 10325
Contents Publication in full By article 10 / 37
GENERAL NEWS / (eu) eu/economy

Ireland to form new government before entering talks

Brussels, 28/02/2011 (Agence Europe) - On Monday 28 February, a spokesperson for EU Economic and Monetary Affairs Commissioner Olli Rehn said the Commission was prepared to talk with the new Irish government when it comes to office. Winner of the recent general elections, the Fine Gael party headed by Enda Kenny is in talks with the Labour Party to set a coalition government by Wednesday 9 March. Fine Gael has been campaigning for renegotiations with the European Commission, the ECB and the IMF over the terms and conditions of Ireland's structural adjustment programme agreed in return for international financial aid for €67.5 billion. The party is unhappy at the high interest rate (nearly 6%) on the loans to Ireland, the fact it is not possible to force the private sector to bear the burden of some of the cost of bailing out the banks and the reduction in the minimum wage. The rest of Europe says that Ireland should increase its company tax (only 12.5%). Rehn's spokesperson said the aid programme was the best guarantee for the Irish economy to help it start again on a sounder basis, including budget consolidation and restructuring of the country's banks. (M.B./transl.fl)

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