Sunday, November 14, 2010

Ireland - Coming to a Head

Bloomberg: 
Ireland is in talks with European officials about current “market conditions” as Germany pushes it to accept a bailout and help reverse a bond sell-off across the euro-region’s periphery. 
 “Ongoing contacts continue at official level with international colleagues in light of current market conditions,” a Finance Ministry spokesman said in an email late yesterday. “Ireland has made no application for external support” and the government is “fully funded till well into 2011,” the spokesman said.
The confirmation of talks comes as euro region finance ministers prepare to meet in Brussels tomorrow night. Allaying investor concerns about Irish finances would help advance Chancellor Angela Merkel’s plan to require investors to help pay for future rescues, a German government official said. European leaders are divided over Merkel’s proposal as well as over whether Ireland should seek aid now, he said. 
A request for aid may total about 80 billion euros ($110 billion) between 2011 and 2013, according to Barclays Capital.  


The Irish have to strike some sort of accord in order to appease the powers that be.  Right now, perception is reality and perception is the periphery are going down and will need help.  It is in the best interest of the Irsih and the union (especially PIIGS) for some "optical" aid to be delivered.

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A student of the markets that has held portfolio management, analysis and trading positions for over 15 years.