Irish finance minister Michael Noonan said country had been left with an ‘appalling legacy’ as a result of the banking crisis Europe’s debt crisis deepened on Thursday night as Ireland was forced into another €24bn (£21bn) rescue of its banking system and jittery financial markets pushed Portugal closer to a bailout. In a furious attack on the previous government, the Irish finance minister Michael Noonan said the country had been left with “an appalling legacy: a legacy of debt, of unemployment, of emigration, of falling living standards and of low morale” as a result of the banking crisis. After stress tests to assess the vulnerability of the banks to a drastic worsening of the economy, Noonan announced that the government would take a majority stake in all the major lenders. These are to be radically reduced in size and focused on just two players. Ireland’s banks have been crippled by the bursting of a house price and commercial property bubble, created when they took advantage of the country’s membership of the single currency to lend recklessly on low interest rates. The collapse caused an economic crisis that has seen output shrink for three years in a row. “We are now in the third year of the banking crisis. The previous government failed to act. They ducked and dived and procrastinated as they lurched from one crisis to the next. They went through periods of denial and periods of self justification. They paved the road to disaster with good intentions,” Noonan said. “They never fixed the broken banks, however.” Ireland’s central bank governor, Patrick Honohan, said the country was saddled with “one of the costliest banking crises in history”. The total bill has now reached €70bn – equal to €17,000 for each citizen. Analysts said that while Ireland’s latest bank bailout had provided the country with breathing space, time was running out for Portugal, where the government admitted that it would miss its target for deficit reduction in 2010 and revised up its budget deficit figure from 7% of GDP to 8.6%. The poor figures triggered a fresh sell-off of Portuguese bonds and analysts said it would now be cheaper for the country to borrow from the International Monetary Fund and EU, as Ireland is doing, rather than access the international markets. Ireland pays 6% interest on its seven-year loans while bond investors want to charge Portugal 9% to borrow for just five years. As a result of the Irish and Greek bailouts, EU partners have now set up the European financial stability facility (EFSF) as a long-term provider of funds for troubled members of the eurozone. “The key question is when will Portugal need to access the EFSF because it has run out of money. Portugal faces two bond redemptions, one on 15 April (€4.3bn) and one on 15 June (€4.9bn). This week, a government official said that Portugal had sufficient reserves to cover both of these. It is hard to see how this can be the case,” said Emilie Gay from the research consultants Capital Economics. However, Portugal’s finance minister, Teixeira dos Santos, said: “The government is not irresponsible and will guarantee that there is the necessary financing so the country can live up to its responsibilities and honour commitments to its creditors.” Lisbon said the change in its deficit figures was the result of an accounting change demanded by Europe’s statistics agency but bond markets feared it was an effort to deceive investors about the true picture in the past. An auction of €1.5bn of bonds has been scheduled for Friday and will be a test for the market. As a result of the announcement in Dublin, all the Irish banks are now likely to be state-owned. Two new universal banks are expected to be created from existing institutions – Bank of Ireland will remain while Allied Irish Banks and building society EBS are to be merged. “We will also ensure that they are fully recapitalised so that the world looks at these core banks with confidence and they in turn help instil confidence in our economy,” said Noonan. The extra bailout cash is within the funding from the EU/IMF support announced last year. Noonan blamed the crisis on the decision made in September 2008 by the former Fianna Fáil government to guarantee the banking sector, and particularly Anglo Irish Bank, during the international banking crisis. Ireland Ireland bailout European debt crisis Euro Currencies Europe Larry Elliott Jill Treanor guardian.co.uk
Continue reading …Irish finance minister Michael Noonan said country had been left with an ‘appalling legacy’ as a result of the banking crisis Europe’s debt crisis deepened on Thursday night as Ireland was forced into another €24bn (£21bn) rescue of its banking system and jittery financial markets pushed Portugal closer to a bailout. In a furious attack on the previous government, the Irish finance minister Michael Noonan said the country had been left with “an appalling legacy: a legacy of debt, of unemployment, of emigration, of falling living standards and of low morale” as a result of the banking crisis. After stress tests to assess the vulnerability of the banks to a drastic worsening of the economy, Noonan announced that the government would take a majority stake in all the major lenders. These are to be radically reduced in size and focused on just two players. Ireland’s banks have been crippled by the bursting of a house price and commercial property bubble, created when they took advantage of the country’s membership of the single currency to lend recklessly on low interest rates. The collapse caused an economic crisis that has seen output shrink for three years in a row. “We are now in the third year of the banking crisis. The previous government failed to act. They ducked and dived and procrastinated as they lurched from one crisis to the next. They went through periods of denial and periods of self justification. They paved the road to disaster with good intentions,” Noonan said. “They never fixed the broken banks, however.” Ireland’s central bank governor, Patrick Honohan, said the country was saddled with “one of the costliest banking crises in history”. The total bill has now reached €70bn – equal to €17,000 for each citizen. Analysts said that while Ireland’s latest bank bailout had provided the country with breathing space, time was running out for Portugal, where the government admitted that it would miss its target for deficit reduction in 2010 and revised up its budget deficit figure from 7% of GDP to 8.6%. The poor figures triggered a fresh sell-off of Portuguese bonds and analysts said it would now be cheaper for the country to borrow from the International Monetary Fund and EU, as Ireland is doing, rather than access the international markets. Ireland pays 6% interest on its seven-year loans while bond investors want to charge Portugal 9% to borrow for just five years. As a result of the Irish and Greek bailouts, EU partners have now set up the European financial stability facility (EFSF) as a long-term provider of funds for troubled members of the eurozone. “The key question is when will Portugal need to access the EFSF because it has run out of money. Portugal faces two bond redemptions, one on 15 April (€4.3bn) and one on 15 June (€4.9bn). This week, a government official said that Portugal had sufficient reserves to cover both of these. It is hard to see how this can be the case,” said Emilie Gay from the research consultants Capital Economics. However, Portugal’s finance minister, Teixeira dos Santos, said: “The government is not irresponsible and will guarantee that there is the necessary financing so the country can live up to its responsibilities and honour commitments to its creditors.” Lisbon said the change in its deficit figures was the result of an accounting change demanded by Europe’s statistics agency but bond markets feared it was an effort to deceive investors about the true picture in the past. An auction of €1.5bn of bonds has been scheduled for Friday and will be a test for the market. As a result of the announcement in Dublin, all the Irish banks are now likely to be state-owned. Two new universal banks are expected to be created from existing institutions – Bank of Ireland will remain while Allied Irish Banks and building society EBS are to be merged. “We will also ensure that they are fully recapitalised so that the world looks at these core banks with confidence and they in turn help instil confidence in our economy,” said Noonan. The extra bailout cash is within the funding from the EU/IMF support announced last year. Noonan blamed the crisis on the decision made in September 2008 by the former Fianna Fáil government to guarantee the banking sector, and particularly Anglo Irish Bank, during the international banking crisis. Ireland Ireland bailout European debt crisis Euro Currencies Europe Larry Elliott Jill Treanor guardian.co.uk
Continue reading …When Wisconsin Rep. Sean Duffy started taking heat for complaining that he was struggling to get by on his $174,000 salary, the Polk County GOP yanked the video of the townhall meeting from its website; now it’s trying to eradicate the video from the Internet, reports Talking Points Memo….
Continue reading …CIA and British MI6 agents are on the ground in Libya , working covertly to help the rebels defeat Moammar Gadhafi’s forces—and they’ve been there for weeks, reports the New York Times . Spies from both countries have been scouting the locations of military targets like munitions depots for coalition airstrikes,…
Continue reading …Gabrielle Giffords’ backers acknowledge that they don’t want to get too far ahead of themselves … but that isn’t stopping them from daydreaming about the dramatic campaign commercials that would run, should Giffords recover and decide to make a play for Jon Kyl’s soon-to-be-vacated Senate seat . Several of her longtime…
Continue reading …Exclusive: Contact with senior aide believed to be one of a number between Libyan officials and west amid signs regime may be looking for exit strategy Colonel Gaddafi’s regime has sent one of its most trusted envoys to London for confidential talks with British officials, the Guardian can reveal. Mohammed Ismail, a senior aide to Gaddafi’s son Saif al-Islam, visited London in recent days, British government sources familiar with the meeting have confirmed. The contacts with Ismail are believed to have been one of a number between Libyan officials and the west in the last fortnight, amid signs that the regime may be looking for an exit strategy. Disclosure of Ismail’s visit comes in the immediate aftermath of the defection to Britain of Moussa Koussa, Libya’s foreign minister and the country’s former external intelligence head, who has been Britain’s main conduit to the Gaddafi regime since the early 1990s. A team led by the British ambassador to Libya, Richard Northern, and MI6 officers, embarked on a lengthy debriefing of Koussa at a safe house after he flew into Farnborough airport on Wednesday night from Tunisia. Government sources said the questioning would take time because Koussa’s state of mind was “delicate” after he left his family in Libya. The Foreign Office declined “to provide a running commentary” on contacts with Ismail or other regime officials. But news of the meeting comes amid mounting speculation that Gaddafi’s sons, foremost among them Saif al-Islam, Saadi and Mutassim, are anxious to explore a way out of the crisis in Libya. “There has been increasing evidence recently that the sons want a way out,” said a western diplomatic source. Although he has little public profile in either Libya or internationally, Ismail is recognised by diplomats as being a key fixer and representative for Saif al-Islam. According to cables published by WikiLeaks, Ismail has represented the Libyan government in arms purchase negotiations and acted as an interlocutor on military and political issues. “The message that was delivered to him is that Gaddafi has to go and that there will be accountability for crimes committed at the international criminal court,” a Foreign Office spokesman told the Guardian , declining to elaborate on what else may have been discussed. Some aides working for Gaddafi’s sons, however, have made it clear that it may be necessary to sideline their father and explore exit strategies to prevent the country descending into anarchy. One idea that the sons have reportedly suggested – which the Guardian has been unable to corroborate – is that Gaddafi give up real power. Mutassim, presently the country’s national security adviser, would become president of an interim national unity government which would include the country’s opposition. It is an idea, however, unlikely to find support among the country’s rebels or the international community who are demanding Gaddafi’s removal. The revelation that contacts between Britain and a key Gaddafi loyalist had taken place came as David Cameron hailed the defection of Koussa as a sign the regime was crumbling. “It tells a compelling story of the desperation and the fear right at the very top of the crumbling and rotten Gaddafi regime,” he said. Ministers regard Koussa’s move to abandon his family as a sign of the magnitude of his decision. “Moussa Koussa is very worried about his family,” one source said. “But he did this because he felt it was the best way of bringing down Gaddafi.” Britain learned that Koussa wanted to defect when he made contact from Tunisia. He had made his way out of Libya in a convoy of cars after announcing that he was going on a diplomatic mission to visit the new government in Tunis. Britain took seriously reports last night that Ali al-Treki, Libya’s minister for Africa, had announced in Cairo that he too had abandoned the regime. Officials were checking reports last night that Tarek Khalid Ibrahim, the deputy head of mission in London, is also defecting. The prime minister insisted that no deal had been struck with Koussa and that he would not be offered immunity from prosecution. “Let me be clear, Moussa Koussa is not being granted immunity. There is no deal of that kind,” Cameron said. Within hours of his arrival in Britain, Scottish prosecutors asked to interview Koussa about the Lockerbie bombing. The Crown Office in Edinburgh has said it is formally asking for its prosecutors and detectives from Dumfries and Galloway police to question Koussa about the 1988 bombing. “We have notified the Foreign and Commonwealth Office that the Scottish prosecuting and investigating authorities wish to interview Mr Koussa in connection with the Lockerbie bombing,” it said. “The investigation into the Lockerbie bombing remains open and we will pursue all relevant lines of inquiry.” But government sources indicated that Britain does not believe that Koussa was involved in ordering the Lockerbie bombing. Koussa was at the heart of Britain’s rapprochement with Libya which started when Tripoli abandoned its support for the IRA in the early 1990s. He was instrumental in persuading Gaddafi to abandon his weapons of mass destruction programme in 2003. One source said: “Nobody is saying this guy was a saint because he was a key Gaddafi lieutenant who was kicked out of Britain in 1980 for making threats to kill Libyan dissidents. But this is the guy who persuaded Gaddafi to abandon his WMD programme. He no doubt has useful and interesting things to say about Lockerbie but it doesn’t seem he said ‘go and do it’.” William Hague, the foreign secretary, said he had a sense that Koussa was deeply unhappy with Gaddafi when they spoke on Friday. “One of the things I gathered between the lines in my telephone calls with him, although he of course had to read out the scripts of the regime, was that he was very distressed and dissatisfied by the situation there,” Hague said. Libya Middle East Arab and Middle East unrest Muammar Gaddafi Foreign policy Peter Beaumont Nicholas Watt Severin Carrell guardian.co.uk
Continue reading …Check, check: Kim Cattrall is not a fan of gossip reporters. When approached by one, from the New York Post ’s Page Six, the Sex and the City star opined, “You’re a smart girl,” and advised switching to a more “respectable” job. “Why don’t you work at—what’s that news…
Continue reading …The war between Microsoft and Google just ratcheted up a notch: In its first-ever antitrust complaint against a competitor, Microsoft asked European regulators today to go after the search giant. Google is stunting competition and attempting to “entrench its dominance” on the Web, Microsoft complained to the European Commission. In…
Continue reading …Heather Ilott went to appeal court after mother bequeathed £460,000 to animal charities – leaving her with nothing A woman has succeeded in overturning her mother’s will leaving everything to animal charities, after the appeal court ruled it was unreasonable to have made no provision for her. Representatives of the charities warned the ruling could open the floodgates to challenges from aggrieved relatives over bequests. Melita Jackson died in 2004, aged 70, leaving nothing to her daughter, Heather Ilott, and an estate worth £486,000 to the Blue Cross, the Royal Society for the Protection of Birds, and the RSPCA. The court heard that when she made the will in 2002, she also left a letter explaining that they had been estranged since her daughter eloped at the age of 17, and the rift had never been healed in her lifetime. Ilott, who has five children, lives in what was described in court as “modest circumstances”, largely on benefits in a housing association home in Great Munden, near Ware in Hertfordshire. She first challenged her mother’s will in the district court, asking for “reasonable provision”, and was awarded £50,000 from the estate. She then asked the high court to increase the sum, but a cross appeal by the charities succeeded, leaving her with nothing. Now three appeal judges, headed by Sir Nicholas Wall, president of the family division, have overturned that verdict, and ruled that the original district court conclusion was correct. They directed that her appeal over the amount of money coming to her should be heard by the high court – but also warned both sides to consider whether further costly legal action was in anybody’s interests. Lady Justice Arden said it was clear that the law intended that an adult child should be able to make a claim, “even if it was possible for him or her to subsist without making a claim on the estate”. Lawyers for the animal charities argued that Ilott and her husband had made “lifestyle choices” that left them short of money, and that since she had lived completely independently of her mother for 26 years, she could not now expect maintenance. Solicitor James Aspden, representing the three charities, called the ruling hugely disappointing. “The court of appeal has reinterpreted 30 years of law and left in its place a lack of clear guidance, which creates further uncertainty about a person’s right to leave money to people or organisations of their choice,” he said. Kim Hamilton, chief executive of the Blue Cross, said it relied on legacies to care for thousands of animals in need. “We are therefore deeply concerned about the impact of this judgment on our future income as it opens the floodgates to legal challenges from any aggrieved relative who, for whatever reason, has been left out of someone’s will.” Family law Animal welfare Charities Animals Maev Kennedy guardian.co.uk
Continue reading …The White House jolted budget negotiations back to life yesterday, getting Senate Democrats to agree to $33 billion in cuts in the hopes of finding middle ground with John Boehner and Co., Politico reports. Joe Biden met with Democratic leadership yesterday evening, and emerged saying that the Senate and president…
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