Ireland and spain can leave euro bailout fund

Ireland and spain can leave euro bailout fund

"It’s a good day for ireland and spain, it’s a good day for europe," said eu safeguard commissioner olli rehn in brussel after consultations with euro finance ministers. The fin said that for the two heavily indebted countries, the problems have not yet been eliminated.

The program for ireland expires in december, the spanish program for ailing banks in january 2014. Ireland’s head of government, enda kenny, had announced in dublin that his country would accept the aid program of the international lenders from the 15. The company will leave the country on december and will not take out a preventive credit line to secure its position. "We are confident that the irish government will take all necessary measures," said the president of the european central bank, mario draghi.

"Temporary assistance with loans has proved successful in both countries," summed up eurogroup head jeroen dijsselbloem. "They (the countries) have always been on track," rehn said. "The programs work if they are implemented properly."

In 2010, ireland became the first country in the eurozone to be bailed out, mainly because of its teetering banks. It was granted a total aid program of 85 billion euros by the euro partners and the IMF. Spain received 41 billion to restructure banks. The next decision to be made is about portugal, whose program ends in may 2014.

"This restores ireland’s economic and political freedom," said irish finance minister michael noonan. "It’s the right moment to do it." The country wants to return to the financial markets at the end of january or beginning of february 2014. The deadline 15. December 2013 had already been mentioned by dublin in november. "It is obvious that the financial support program for the spanish banks has worked properly", says the spanish minister of economy luis de guindos. Spain does not need a connection program.

"This shows our policy of stabilizing and defending the european truth is successful and right," said acting german head of department wolfgang schauble (CDU).

The situation for greece, on the other hand, looks bleaker. Crisis-hit country falls short of lenders’ expectations in restructuring its public finances. Dijsselbloem said the troika review, which has been ongoing since september, must finally be completed. "We need more progress before we can make decisions." A problem is a budget hole in the coming year. Eurogroup unlikely to make decisions until new year.

The treasurers of all 28 EU states will not be able to agree on a tightening of the european taxation of interest on (tomorrow) friday. With this, the banking secrecy within the EU is to fall de facto finally. The austrian minister maria fekter made considerable reservations. Luxembourg, where a new government is currently being formed, will not agree either.

The second pillar of the european banking union, a common system for the resolution or restructuring of ailing banks, also remains controversial. Germany is putting the brakes on the project, also for legal reasons. Schauble said: "we want a solution under all circumstances – a political agreement before the end of the year. That is possible."Diplomats do not expect a compromise as early as friday.

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