Patrick Honohan pointed to the “hope” of a “very important loan of tens of billions of euros” to rescue the ailing financial sector Ireland, in the clearest signal to date that his country would be prepared to accept a ransom .
“No I decide, but the government. But my hope is that this happen,” said bank governor to Irish broadcaster RTE.
His remarks coincide with the arrival in Dublin of a mission from the European Commission, the European Central Bank (ECB) and the IMF to examine the financial situation amid fears that Ireland will be the second largest economy of Eurozone economic stagnation threatened rescued this year, after Greece.
Honohan said that although he hoped that the meetings will be held in the Irish capital will lead to a loan, was not worried about its effects in a country where many fear a loss of sovereignty in the event of redemption.
“I think it’s the only way forward,” he said. “I do not see it as something that is really worrying or should lead to a huge change of direction,” he added.
Despite huge international pressure, the Irish Government has not yet agreed to accept a package of assistance due to fears about the concessions that should make a change, especially in tax matters.
The coalition government of the Irish Prime Minister Brian Cowen, is determined to protect their income tax, one of the lowest in Europe.
This tax will allow Ireland to attract foreign companies but has been criticized by countries like Germany, which they consider an unfair advantage.
In a sign of the tension prevailing in the country, Parliament was forced to briefly suspend their activities when the debate escalated after the opposition asked to discuss the mission.
Subsequently, the Irish Minister for Communications, Eamon Ryan, Green Party member of Fianna Fail partner in the governing coalition, said he shared the analysis of the situation.
“I think the central bank governor has made very well. No consultant disagrees on what he said, also told RTE.
“If necessary, if markets lack confidence, and this has been our biggest problem,” study provide more capital. “
Ryan said he expected the government to present to the middle of next week his four-year plan of adjustment of EUR 15,000 million has been preparing for weeks.
The plan seeks to reduce the deficit Irishman, who this year will reach 32% of Gross Domestic Product (GDP) to less than 3% in 2014.
This will be followed by the announcement on 7 December 2011 budget, the first stage of drastic austerity cure and should include savings of 6,000 million euros.
In this regard, the minister said he expected the IMF’s European mission and modify this plan in fact, when some analysts believe that Dublin could be forced to revise it.
“I do not do it,” Ryan said.
The EU is particularly concerned about the risk of transmission of the weaknesses of Ireland to other countries like Portugal and Spain, especially at times when it is feared that a stalemate of all the 16 economies that make up the eurozone.
According to a report released Thursday by the OECD (Organization for Economic Cooperation and Development), the Eurozone’s GDP will grow 1.7% this year, but next year will stagnate at this level before rebounding to 2 % in 2012.
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