There’s a hole in the system, dear Draghi, dear Draghi,
There’s a hole in the system, dear Draghi: a hole.
Then fill it dear Olli, dear Olli, dear Olli,
Then fill it dear Olli, dear Olli: fix it.
With what shall I fill it, dear Draghi, dear Draghi,
With what shall I fill it, dear Draghi: with what?
With taxes dear Olli, dear Olli, dear Olli,
With taxes dear Olli, dear Olli: try tax!
But the tax take is falling, dear Draghi, dear Draghi,
But the tax take is falling, dear Draghi: it falls!
Increase them dear Olli, dear Olli, dear Olli,
Increase them dear Olli, dear Olli: whack’em on!
But tax take falls more now, dear Draghi, dear Draghi,
But the tax falls more now, dear Draghi: it fell!
Squeeze the sovereigns, dear Olli, dear Olli, dear Olli,
Squeeze the sovereigns dear Olli, dear Olli: squeeze them!
But the sovereigns are bursting, they’re bursting, they’re bursting,
But the sovereigns are bursting, they’re bursting: some burst!
Try the savers, dear Olli, dear Olli, dear Olli,
Try the savers dear Olli, dear Olli: try them!
The hole just got bigger, got bigger, got bigger,
The hole just got bigger, got bigger: it grew!
Then the bondies, dear Olli, dear Olli, dear Olli,
If you must it’s the bondies, it’s the bondies: burn them!
Now the system is creaking, is creaking, is creaking,
Now the whole system is dear, dear Draghi: it creaks!
Inflate it dear Draghi, dear Draghi, dear Draghi,
Inflate the system it dear Draghi, dear Draghi: inflate!
But I don’t have a mandate dear Christine, dear Christine,
But I don’t have a mandate dear Christine: don’t ask!
Well then print it, dear Draghi, dear Draghi, dear Draghi,
Well then print it dear Draghi, dear Draghi: please print.
But we don’t have a printer, dear Christine, dear Christine,
We don’t have a printer, dear Christine: there’s no ink!
Well who make money, dear Draghi, dear Draghi?
Well who can make money, dear Draghi: who can?!
Well the banks are supposed to, dear Christine, dear Christine,
Well the banks are that system, the banks: that’s who!
[All together now]
But there’s a hole in the system, dear Draghi, dear Draghi,
There’s a hole in the system, dear Draghi – a hole!
Ireland received a significant boost in its bid to seek an extension to the maturities of its bailout loans last night after finance ministers of the countries that share the euro currency backed the deal.
Yum. Tasty carrot.
While agreement has been reached in principle to extend the maturities, the scope and technical detail of how the extension of maturities will be implemented have yet to be worked out. If agreed by European finance ministers today, it will fall to the bailout troika to devise the technical details of the proposal.
Thwack! Keep moving debt-donkeys.
Original plans to restructure the country’s bailout payments to the Troika by the end of this month were delayed, with Finance Minister Michael Noonan admitting he was aiming for a resolution by December 5.
But Enda Kenny said while he hoped for a timely conclusion, reaching the right agreement was his priority.
“I would like to think it could be concluded by the end of the year, but it’s important to get the right decision and that’s where our focus is,” said Mr Kenny.
“What’s important is distinct from naming a particular date.”
“Will we have a conclusion by the end of the year? You will recall Commissioner Rehn said he would like to see it finished by the end of October but I made the point I didn’t think that was practical,” he added.
“There are other considerations for other countries with whom we are talking.”
“You took the burden on your shoulders to avoid the crash of the system of all the other countries, also my country,” said Mr Schulz, during an address to Ireland’s Dail parliament.
“Therefore I find the 27% German participation in the package for Ireland is to give back solidarity to the country that gave solidarity to us.”
He added that he was optimistic leaders would stick a June agreement on separating bank and sovereign debt.
EU economics commissioner Olli Rehn said yesterday there were “different interpretations” of what was agreed at the June EU summit in relation to using the euro area’s bailout fund to recapitalise banks.
However, Mr Kenny inisted last night the decision was binding and called on fellow leaders to demonstrate they could follow through on the agreement.
“In meetings of EU leaders one of the problems you find is the missing element is trust that if they make a decision they will stand by it,” he said at the International Bar Association conference’s opening in Dublin.
“There is a need for transparency, for decisiveness, for clarity,” he said, departing from a prepared script.
Finance ministers from Germany, Finland and the Netherlands delivered a surprise blow to Ireland’s campaign for debt relief last week when they argued national bodies should remain liable for most bank losses.
Mr Kenny’s comments last night echoed remarks contained in his speech to Fine Gael’s presidential dinner on Saturday night, when he insisted a binding decision had been taken by heads of state.
“There is no resiling and going back from a formal decision made by the leaders of the 27 countries of the European Union,” he said. “I was happy that at that meeting in June there was a clear and unequivocal decision made not by ministers, not by civil servants, not by commentators but by the heads of government of the 27.”
Mr Kenny said the decision had two parts: “Firstly, to break the link between sovereign and bank debt to allow for recapitalisation directly of banks and secondly, that a review of Ireland’s position would be held to improve our capacity to meet our debts and that equal treatment would be given to the country,” he said. “They’re the decisions that were made. They’re the decisions that stand.” Mr Kenny was warmly applauded for his comments.
Jean Claude Juncker was speaking in Nicosia after the first session of an informal meeting.
He said the question of securing a deal on the reduction of Ireland’s banking debt would be discussed again in upcoming meetings.
EU Commission Vice-President Olli Rehn said that the quality of the outcome of those negotiations is more important than the time schedule.�
Mr Rehn said Ireland is going through an economic rebalancing which was necessary.
The government will probably fail in its bid to secure an accord to reduce its legacy banking debt by the end of October, two people with direct knowledge of the talks said.
European Economic and Monetary Affairs Commissioner Olli Rehn said in July that concrete proposals on the Irish question would be presented to euro-area finance ministers in September before a final decision in October. The details are unlikely to be on the agenda when ministers meet in Cyprus next week, said one of the people, who asked not to be identified because the talks are private.