Today’s Irish Independent carries a report which outlines the conditions placed on the Irish government as part and parcel of its €85bn bail out
The loans will be paid out in tranches only if the Irish government meets some hellish conditions.
The terms of the deal clearly state that if any "shortfall" in savings from the public sector occurs, a fresh reduction in the "public service wage bill" will be considered by the end of next September (ie cut costs or we’ll cut your pay)
Other conditions attached to the deal are:
• Every week, the Government must tell the IMF, the EU and ECB what money it is taking in and spending.
• The banks must reveal what loans they've given out every week.
• The numbers and salaries of all those working in the public sector must be disclosed every three months.
• The banks must give detailed information on deposits every month, including how long deposits will stay in the banks and whether they're from householders, companies or other banks.
• The banks must state how much debt they have falling due over the next 36 months on a monthly basis.
• Sheltered professions, including lawyers, doctors and pharmacists will face radical changes within nine months as part of a plan to drive down costs and increase growth in the services sector.
• The State will have to sell off its stakes in Irish banks "within the shortest timeframe possible".
The document goes on to spell out the need for cutbacks of €6bn in 2011, €3.6bn in 2012, and another €3.1bn in 2013.
The stringent conditions are included in an agreement signed by Finance Minister Brian Lenihan and Central Bank Governor Patrick Honohan.
The potential cut in public sector pay that is likely to be most contentious. It has already been cut by an average of 14pc through the pension levy and last budget pay cut.
SIPTU general president Jack O'Connor told the Irish Independent last night the trade unions would cooperate with reforms. He said it was likely that progress would be made by the time of the deadline.
However, he warned if there was a "unilateral departure" from the agreement when staff were compliant, "we'll have to respond".
"I don't think any of it is fair," he said. "How could it be fair that everybody in Ireland who had nothing to do with the cause of the collapse has to spend the next seven years paying for it just in order to rescue the French and German banks?"
Fine Gael and Labour -- the parties likely to form the next government -- claimed the multi-billion bailout deal has "tied their hands".
Ach it is bad news for the people of Ireland who will face years of hardship even though it was the banks that although the banks that were architects of the country’s downfall. I wonder how long it will be before the delinquent banks start paying humungous bonuses again…
Fianna Failure are going to be slaughtered at the next general election. Sadly the successor government will have little room for manoeuvre,