Gilmore vindicated by Rehn response on bailout renegotiation
Posted on February 16, 2011 at 11:55 AM
Ollie Rehn confirms there is "room for discussion on particular measures" of bailout deal in written response to Nessa Childers MEP
European Commissioner for Economic and Monetary Affairs Ollie Rehn has written to Labour MEP Nessa Childers to inform her that there is "room for discussion on particular measures" of the Irish bailout deal, in response to a question Ms Childers tabled on whether or not the incoming government will have any scope for renegotiation.
Childers has welcomed Commissioner Rehn's response as "vindication for our party leader Eamon Gilmore, who has long since argued that the EU/IMF deal negotiated by Fianna Fail involves considerable room for discussion. From the outset other political parties, including Fine Gael, indicated that this was not the case."
She continued "Several weeks ago I wrote to Commissioner Rehn in order to get a definitive answer to one of the key points of debate in this election campaign- Can Ireland's bailout deal with the European Commission, IMF and ECB be renegotiated? The answer, while qualified, is 'yes'.
"Mr Rehn did not touch on the interest rate in his response, though he has continually stated that this was a matter to be discussed by E.U. Government leaders rather than at Commission level, and reiterated this in interviews with several Irish newspapers this week.
"However the Commissioner has stated quite clearly is his response to my question that when it comes to the terms of the deal, including the destination of the EU-ECB funding and the policies which the Irish government must pursue in order to secure it, nothing is set in stone beyond 2011 and these are open to reinterpretation by the incoming Irish government.
"Mr Rehn has further stated that "the programme provides for some reprioritisation of measures, in particular if circumstances change". In this regard, I don't think anyone in the European Commission can argue that a change in government, with the different economic approaches and new programme for government that it will bring, does not represent a considerable change of circumstances."
"Crucially, Mr Rehn has also informed me that cost cutting or other measures "have not been identified in detail, therefore leaving some room for discussion on particular measures." This confirms that the incoming Irish government can take a markedly different approach to that which was set out in the original Fianna Fail-led arrangement.
"The Fianna Fail party was founded on the belief that Ireland had come up short in crucial negotiations and had got a raw deal. It is deeply ironic that on this occasion, with all available players willing and negotiations conducted on home turf, it is Fianna Fail who have returned to the Irish people with another sell-out, which again leaves us half-in and half-out of political and economic independence.
"Commissioner Rehn's response, in validating the position which Eamon Gilmore has taken since the day this deal was struck, has shown that if the Irish people elect a government which can negotiate hard and not leave anything on the table, it is still possible to achieve something approaching a fair deal."
- For more information contact Shane Griffin on 0032489101814
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