I knew that! I knew that! When I read yesterday that the Spanish bailout of the banking system had no requirements attached for Spain I knew that soon the British media will compare the Spanish bailout to the Irish bailout.
Knowing how much suffering was in Ireland to get rid of the British troops I find ludicrous that the British speak as if they were supporting the Irish. In fact as Scotland may come outside the UK without so much suffering as the Irish did maybe the UK should compensate Ireland for all that suffering.
In any case I am sure the British media know the following facts but they do not want to acknowledge:
The bailout to Ireland was enormous in comparison to its GDP. So even if the quantity of the bailout could be the same, the bailout of Spain is MUCH MORE SMALLER in comparison with its GDP. So it is obvious that the conditions cannot be the same! Much more money per GDP and per capita was given to Ireland that it will be given to Spain.
Secondly, and that it is quite importnat!: Ireland is cut from the financial markets. So it is Europe the one that sends the money to Ireland. In the case of Spain the money from Europe goes to its banking system. SPAIN STILL WILL HAVE TO GO TO THE INTERNATIONAL MARKETS TO SELL ITS BONDS.
So, you cannot compare the situation of what happens with Ireland with Spain. In the case of Ireland the money given per capita and gdp is enormous. In Spain is much less! I think in Ireland it is about 135 % GDP and in the case of Spain would be 10% GDP. So it is obvious that the requirements cannot be the same! EUROPE is lending much more money to IRELAND in a per capita basis.
To end, let me say that it is obvious that the Germans are not so stupid as to lend money to Spain without any conditions! In fact if they do not put us extra conditions it is because they have already put us very strict conditions for a long time! Spain has been doing what Angela Merkel has wanted all this last months!
In fact, AND WE WILL DISCOVER THAT SOON, it is false that there are no conditions! Do not have any doubt whatsoever that if Spain government does not do what Brussels says then we will have a problem!
In fact, I think that the Irish should go to sleep with more calm that Spaniards! The more conditions attached for the bailout the more sure they can be that they will be able to return the money!
All this of no conditions to Spanish bailout has been a way to sell to the Spaniards the bailout! It is internal propaganda. But be sure that Angela Merkel won’t let Spain waste the money. The eurogroup stated yesterday quite clearly that Spanish government is the responsible to return the money. And that it will keep its deficit and debt accordingly!
So I find ludicrous that the British press try to show the Spanish bailout as a wonderful thing as compared with the Irish bailout. Tomorrow Spain must go again to the International markets to sell its bonds. Ireland does not do that because it is Europe the one who cares about the money. So it is obvious that the two cases are different.
And in fact, SPAIN could end like IRELAND quite soon I am afraid. If the markets do not buy Spanish bonds then we would need a full intervention like Ireland and then I am sure the conditions would be also so hard.
So in brief, I hope the British media take more care of the pound instead of wanting to put Irish against Spanish. And be sure of one thing! Each day the UK is more isolated in this part of the world. Ireland has a whole continent behind them. And in any case I am sure the Irish know perfectly well that Spain never invaded Ireland.
- Here They Come: Ireland Demands Renegotiation Of Its Bailout Terms To Match Spain (zerohedge.com)
- Spain finally asks for bailout (newstalk.ie)
- So why can’t Ireland get a Spanish deal? (sluggerotoole.com)
- Here They Come: Ireland Demands Renegotiation Of Its Bailout Terms To Match Spain (sgtreport.com)