320 lines
8.2 KiB
Plaintext
Executable File
320 lines
8.2 KiB
Plaintext
Executable File
finance
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financialcrisis
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8139354
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# UK pledges 7bn to help bail Ireland out of debt crisis
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## George Osborne has pledged British support of up to £7bn for an EU bail-
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out of Ireland and its banking sector.
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TelegraphPlayer-8139836
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[<][1] [>][1]
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* [![The European Union is locked in a 'survival crisis' as Ireland resisted
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calls to take an international bailout. ][2]][3]
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Video
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[Irish crisis explained in 30 seconds][3]
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* [![][4]][5]
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Article
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[How the Irish debt crisis unfolded: timeline][5]
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* [![How safe is your money in an Irish bank?][6]][7]
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Article
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[How safe is your money in an Irish bank?][7]
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* [![][8]][9]
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Article
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[Ireland rescue - the cost to Britain][9]
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* [![][10]][11]
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Article
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[Ireland debt crisis: European banks' exposure][11]
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[1][1] [2][1]
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[![Bruno Waterfield][12]][13]
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By [Bruno Waterfield][14], in Brussels 9:11AM GMT 17 Nov 2010
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[Follow Bruno Waterfield on Twitter][15]
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[Comments][16]
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The Chancellor arrived in Brussels for a meeting of EU finance ministers aware
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that exposure of British financial institutions to Irish banks is £140bn.
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"Ireland is our closest neighbour. And it's in Britain's national interest
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that the Irish economy is successful and we have a stable banking system," he
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said. "Britain stands ready to support Ireland."
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Britain is not part of the 16 member eurozone but is a member of a £51bn
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"European Financial Stabilisation Mechanism" that will be used to aid Ireland.
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The European Commission said a potential British role was "under discussion"
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as EU and IMF officials headed to Dublin today to carry out "intensified,
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short and focused" preparations for a bailout of Ireland.
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Officials said that multi-billion cash injection could be ready within "five
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to eight days" of a eurozone decision to step into save Irish banks.
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## Related Articles
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* [Ireland set to tap €80bn loan as it opens door to IMF mission][17]
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18 Nov 2010
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* [Ireland on the brink of massive bail-out][18]
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18 Nov 2010
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* [Ireland denies 'surrendering sovereignty'][19]
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18 Nov 2010
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* [Greek rescue frays amid Irish crisis][20]
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16 Nov 2010
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* [Graph - Ireland's bailout challenge][21]
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16 Nov 2010
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* [Horrible truth starts to dawn on EU][22]
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16 Nov 2010
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The intervention is climb down for Ireland after other eurozone countries
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pushed it into accepting an intervention against its wishes.
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Brian Lenihan, Irish finance minister, insisted that a bail-out was not
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inevitable but admitted that Irish sovereignty was compromised by its
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membership of the euro. "When you borrow, you lose a little bit of your
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sovereignty, no matter who you borrow from," he said.
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"Sovereignty, in my view in a European context, is shared. We have a duty to
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the eurozone as our currency and it is Ireland's currency as much as it is
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Germany's or France's. We have a duty to sustain the stability of the
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eurozone. Ireland is the zone of attack in the eurozone."
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Mr Lenihan said talks with the IMF-EU team would begin on Thursday.
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The European Central Bank and other euro currency members have been concerned
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that that Irish banks have been increasingly dependent on support and putting
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Ireland under intense pressure to give to controversial aid conditions that
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will reduce the country economic independence.
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No details of a rescue emerged at meeting of eurozone ministers last night but
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it is likely that a bail-out will be choreographed with an Irish four year
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spending plan and austerity programme which could be as early as next week.
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Jean-Claude Juncker, Luxembourg's Prime Minister and chairman of the
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eurogroup, said he expected a decision on the bail-out "within the coming
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days".
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"Market conditions have not normalised and pressures remain, giving rise to
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concerns that further reforms and stabilisation measures may be appropriate,"
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he said.
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EU economics commissioner Olli Rehn said the talks would centre in the main on
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a package to stabilise Ireland's banks and said it would be available if the
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Government choose to seek aid.
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Olli Rehn, the European economic and monetary affairs commissioner, said the
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EU-IMF teams sent into Ireland would have an "accent on restructuring its
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banking sector".
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"This can be regarded as an intensification of preparations for a potential
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programme in case it is requested and deemed necessary," he said. "This is a
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time for cool heads and clear determination to take the necessary decisions to
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that effect both at the EU level and in every member state."
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The Irish government has insisted that it can afford to repay its record
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debts, despite having an annual deficit equivalent to almost a third of the
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size of its economy.
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The [growing market turmoil surrounding Ireland][23] has also threatened to
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push Spain and Portugal into crisis. The cost of Spanish government borrowing
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rose sharply on Tuesday.
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A full EU-IMF bail-out would mean Ireland losing key areas of political and
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economic sovereignty. This would be deeply controversial and could cost the
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Irish government its majority.
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Senior EU figures have suggested that Ireland should increase its low
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corporate tax rates, regarded by the Irish as key to Ireland's economic
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recovery.
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Herman Van Rompuy warned on Tuesday, that the deepening debt crisis in Ireland
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which has spread to other parts of the eurozone has left the [single currency
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and EU fighting for their "survival"][24].
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"We are in a survival crisis," he said. "We all have to work together in order
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to survive with the euro zone because if we don't survive with the euro zone,
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we will not survive with the EU."
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[What are these?][25]
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* Share: [Share][1] [ ][26] [ ][27]
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[Tweet][28]
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http://www.telegraph.co.uk/finance/financialcrisis/8139354/UK-pledges-7bn-to-
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help-bail-Ireland-out-of-debt-crisis.html
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Telegraph
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## [Financial Crisis][29]
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* ### [News »][30]
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* ### [Europe »][31]
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* ### [Ireland »][32]
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* ### [Finance »][33]
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* ### [Economics »][34]
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In finance
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[![Truncheon-wielding police in Barcelona have clashed with protesters at a
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makeshift camp that is one of dozens erected in Spain to protest at high
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unemployment][35] ][36]
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### [Spanish anti-crisis protests][36]
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[![Thousands of protesters occupy Puerta del Sol square in Madrid][37] ][38]
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### [Huge protests in Madrid][38]
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[![Riot police use tear gas as protesters throw petrol bombs in Athens][39]
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][40]
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### [Tear gas and petrol bombs][40]
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[![Irish bank stress tests: the key points][41] ][42]
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### [Irish bank stress tests: key points][42]
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[![Q&A: What is the Independent Commission on Banking?][43] ][44]
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### [Q&A: What is the Independent Commission on Banking?][44]
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[X][1] Share & bookmark
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Delicious Facebook Google Messenger Reddit Twitter
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Digg Fark LinkedIn Google Buzz StumbleUpon Y! Buzz
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[What are these?][25]
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Share:
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* [ ][1]
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* [ ][26]
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* [ ][27]
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* [Tweet][28]
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* Advertisement
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![][45]
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telegraphuk
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Please enable JavaScript to view the [comments powered by Disqus.][46] [blog
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comments powered by Disqus][47]
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[![][48]][49]
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Advertisement
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[Market Data »][50]
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sponsored features
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