Brussels, 30/10/2012 (Agence Europe) - German finance minister Wolfgang Schäuble is convinced that Ireland will no longer need financial aid and will be able to roll over its debt unaided in 2013 and hence be free of the constraints imposed by its lenders. The Irish Times quotes Schäuble as saying after an interview with Irish finance minister Michael Noonan on Monday 29 October that he was fully convinced, a hundred percent convinced, that Ireland is on track and there were no problems with that. He added that direct bank recapitalisation must not be retroactive, in other words must not cover debt accrued before the single eurozone bank supervisory system under the aegis of the ECB comes on stream. Germany and the ECB agree that it will not be possible for the new mechanism to be up and running before the summer of next year, or even later, in 2014. Schaüble spoke of earlier comments by the German chancellor, Angela Merkel, and the Irish prime minister, Enda Kenny, that Ireland was a “special case,” but refused to comment on the discussions under way between Ireland and the ECB about losses made by two nationalised banks, the Anglo Irish Bank and Irish Nationwide.
The three-year structural adjustment programme introduced by Ireland in late 2010 in exchange for a €67.5 billion aid package, is due to end in a year's time (see EUROPE 10266), and Ireland has already returned to the money markets, successfully issuing medium-term bonds. (MB/transl.fl)