Ireland, bailout and latest blog 'Euromyths'

Article published on Nov. 22, 2010
Article published on Nov. 22, 2010
Once again the presentation in the media of the financial rescue package of a eurozone country is plainly wrong. The so-called 'bailout' does not consist in a gift of capital to Ireland, and taxpayers are most likely not to pay anything as a consequence. Extract from's blog in the dock

The problem faced by Ireland is that due to a lack of trust of investors in its ability to repay its debts, the current interest rate investors would demand on new Irish bonds are prohibitive (around 10%). What other EU countries are going to do is to borrow money themselves at a low rate because investors can trust them to repay, and lend it to Ireland with a small premium. The final rate of interest on the bail-out money is likely to be around 5% for Ireland.

Where are the EU taxpayers here?

Read the full post 'European taxpayers are going to pay to bail out Ireland... Not' on's latest blog, Euromyths

Main: take the money and run? Image: (cc) Vincepal/ Flickr