Ireland has an opportunity to strike while the iron is hot and secure an improved bank deal from the EU, following the latest concessions granted to Greece, according to Independent MEP Marian Harkin.
Speaking today in the European Parliament, Harkin noted that “we in Ireland still remain in a straitjacket of debt.”
She went on: “However, the latest troika deal concluded with Greece this week might give us some consolation, in that the Greeks have secured a more favourable interest rate on their debt – this is not a write-down in real terms but it does mean less to pay back because of lower interest rates.
“This I believe isIreland’s opportunity,” the Ireland North & West MEP argued, adding that “we started out with a penal interest rate of almost 6% on our debt. These usurious levels of interest were initially levied to teach the ‘delinquent child’ a lesson.
“However, Portugal’s bailout interest rates were much lower so we were able to access the same rates by piggybacking on the Portuguese.”
Ireland has earned the right to ease pace of austerity.
“Now the same opportunity knocks for Ireland. Greece has received a deal that cuts interest rates on loans to just 50 points above interbank lending rates – lower thanIreland’s. This is an effort to ensure its debt-to-GDP ratio reaches manageable levels by 2020,” Harkin said.
“Ireland should now demand a similar deal. We ‘took one for the team’ at the start of this crisis according to Sharon Bowles, Chair of the European Parliament’s Economic Affairs Committee.”
“In my opinion we have continued to be the very best team players in Europe and the very least we can expect is the same interest rate as Greece and an easing of the pace of fiscal consolidation – the ‘poster child of Europe’ has earned that right,” the Independent MEP concluded.
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