EU urges world to aid Eurozone

EGAR · 19-12-2011 9:30pm #1

EU finance ministers have "fallen short" in their efforts to provide €200bn in loans to the IMF, following the refusal of Britain to contribute directly to the fund.

Eurozone chief Jean-Claude Juncker has said it has urged the G20 and other big contributors around the world to aid eurozone bailout efforts through the International Monetary Fund.
The appeal for help from states who rely on the eurozone as a major trading partner came after the European Union failed to reach a loans target of €200bn set by leaders at a summit 10 days ago.
Eurozone finance ministers pledged €150bn in new loans for the IMF to use in stabilising the debt-laden currency area.
The shortfall was in large part caused by Britain's refusal once more to sign up on the terms demanded.
The IMF currently has some €250bn available for lending to countries that enter reform programmes.
"The EU would welcome G20 members and other financially strong IMF members to support the efforts to safeguard global financial stability by contributing to the increase in IMF resources so as to fill global financing gaps," Mr Juncker said in a statement after three-and-a-half-hour talks.
The Czech Republic, Denmark, Poland and Sweden, who are EU members but not in the eurozone, each pledged to make loans to the IMF for use in stabilising the 17-nation currency bloc, Mr Juncker added.
The four countries "indicated their willingness to take part in the process of reinforcing IMF resources," he said.
Speaking after the talks, Minister for Finance Michael Noonan said much progress was made on aiding the IMF and on the European Stabilisation Mechanism.
Mr Juncker added that Britain "will define its contribution early in the new year in the framework of the G20".
A British government spokesman said: "The UK has always been willing to consider further resources for the IMF but for its global role and as part of a global agreement."
Mr Juncker noted that for some EU states, notably Germany, parliamentary approval will be required before it will come up with the lion's share at €45bn
Germany said it will only do so on condition the biggest G20 contributors, including the US, come through.
Elsewhere, European Central Bank chief Mario Draghi said he was saddened by the spat between Britain and the rest of the EU over London's refusal to join the fiscal package to solve the bloc's debt crisis.
"Britain certainly has shown a capacity to undertake a fiscal correction of an extraordinary size," Mr Draghi said in an interview in today's Financial Times.My more general reaction to all this is that it's sad. I think the UK needs Europe and Europe needs the UK."
On 7 December, ratings agency Standard and Poor's placed major EU economies on watch for downgrades of their AAA credit ratings.
Fitch Ratings expressed doubt Friday that an envisaged European budget discipline pact would solve the debt crisis and warned it may soon downgrade six countries.

http://www.rte.ie/news/2011/1219/eurozone.html

starbelgrade · 19-12-2011 9:33pm

I heard that next Easter the Africans will be handing out Trocaire boxes with pictures of poor, white Europeans on them.

TeddyTedson · 19-12-2011 9:34pm

I love getting in early to an epic thread like this that will spark hours of debate with your controversial opinions on this matter

richymcdermott · 19-12-2011 9:35pm

**** em:pac:

imitation · 19-12-2011 9:38pm

starbelgrade wrote: »

I heard that next Easter the Africans will be handing out Trocaire boxes with pictures of poor, white Europeans on them.

Think of poor Fintan driving around in his 3 year old BMW, or little Hans who will have to make do with his iPad 1 this Christmas. How can Defias keep his Porsche on the road now the government actually expects him to pay taxes ?

amacca · 19-12-2011 9:43pm

christ

threads like this make me wish I was filthy stinking rich (asset), connected and as corrupt as they come.

so I wouldn't have to watch or even pretend to care about anything resembling economic commentary and could instead concentrate on driving my lamborghini with typical playboy style and panache with just a hint of entitled wankerishness but not so much that the gorgeous yet shallow gold diggers cant stomach me.

Chuck Stone · 19-12-2011 9:44pm

starbelgrade wrote: »

I heard that next Easter the Africans will be handing out Trocaire boxes with pictures of poor, white Europeans on them.

I've entered my nephew for the photo on the Trocaire box.

Black people always seem to win and that's racist.

EGAR · 19-12-2011 9:47pm

Mr Juncker noted that for some EU states, notably Germany, parliamentary approval will be required before it will come up with the lion's share at €45bn
Germany said it will only do so on condition the biggest G20 contributors, including the US, come through.

And if they don't? Then what?

Crazy Horse 6 · 19-12-2011 9:47pm

Plenty of rumours doing the rounds in the financial sector that this whole thing would collapse within a few days.

starbelgrade · 19-12-2011 9:49pm

Crazy Horse 6 wrote: »

Plenty of rumours doing the rounds in the financial sector that this whole thing would collapse within a few days.

A man down the bank told me the sky's gonna fall in.

amacca · 19-12-2011 9:50pm

EGAR wrote: »

And if they don't? Then what?

uncharted territory

there be sea monsters and dread creatures yonder the likes of which ye have never dreamed young master!

Robdude · 19-12-2011 9:50pm

Crazy Horse 6 wrote: »

Plenty of rumours doing the rounds in the financial sector that this whole thing would collapse within a few days.

I've been hearing that for the last three years now.

Ghandee · 19-12-2011 9:54pm

Can't take knickers off a bare ass!

TheZohanS · 19-12-2011 9:54pm

They're printing gold in the Mint in Sandyford...according to the girl that served me in Centra today.

im invisible · 19-12-2011 9:57pm

*troika box pun*

Troika

Crazy Horse 6 · 19-12-2011 9:58pm

Robdude wrote: »

I've been hearing that for the last three years now.

Believe you me there is a general sense of panic at the moment. It may come to nothing it may not.

starbelgrade · 19-12-2011 9:59pm

Crazy Horse 6 wrote: »

Believe you me there is a general sense of panic at the moment. It may come to nothing it may not.

There's nothing scarier than general panic.

It so general..... AAAAAGGGGHHH!!!!

CliffHuxtabel · 19-12-2011 10:07pm

Crazy Horse 6 wrote: »

Believe you me there is a general sense of panic at the moment. It may come to nothing it may not.

Thats called Christmas shopping. It should peak around 4 o'clock next Saturday afternoon.

Robdude · 19-12-2011 10:15pm

I'm not an economist - can anyone explain what would happen if nobody gives money to the Eurozone? If the euro 'collapses' what does that really mean?

Would any country or currency benefit from the Euro tanking? Is this good news for China or the US?

starbelgrade · 19-12-2011 10:21pm

Robdude wrote: »

I'm not an economist - can anyone explain what would happen if nobody gives money to the Eurozone? If the euro 'collapses' what does that really mean?

Would any country or currency benefit from the Euro tanking? Is this good news for China or the US?

Who cares? It's only money.

General General · 19-12-2011 10:23pm

I'm an authority on all things 'general' & I can confirm that 'the sense of panic out there' is indeed 'general'.

We'll end up getting saved by the Russians. They'll get a lot of tech' transfer in return, plus a more pro-Russia stance from the EU, plus we will have to give them many, if not all our mine shafts.

My name is URL · 19-12-2011 10:26pm

Le ChEUggers

amacca · 19-12-2011 10:27pm

General General wrote: »

plus we will have to give them many, if not all our mine shafts.

and dancing girls....you forgot dancing girls.

(although they may not be too kindly disposed to us after we send over our indigenous crop of dancing girls - may as well hire some and cailin them up)

skyhighflyer · 19-12-2011 10:30pm

Crazy Horse 6 wrote: »

Believe you me there is a general sense of panic at the moment. It may come to nothing it may not.

If you could be even slightly more specific than 'general' panic in the 'financial sector' I might assume you're doing more than unnecessary scaremongering.

amacca · 19-12-2011 10:31pm

My name is URL wrote: »

Le ChEUggers

EU: Excuse me sirs...could you spare a moment of your time?

US: Not a moment to lose...to the batcave Geithner!

Rest of World: Fcuk right off EU with your brightly coloured anorak, clipboard and general ****wittery.

Doc Ruby · 19-12-2011 10:33pm

Crazy Horse 6 wrote: »

Plenty of rumours doing the rounds in the financial sector that this whole thing would collapse within a few days.

Does it matter though. Even if it does collapse they'll be back in a year tops with a bigger, better euro. There's waaaay too much money and power at stake not to - the eurozone combined is larger and wealthier than the USA. Thats not going to slip through their fingers.

ejmaztec · 19-12-2011 10:44pm

starbelgrade wrote: »

I heard that next Easter the Africans will be handing out Trocaire boxes with pictures of poor, white Europeans on them.

At least we won't be using the money to buy guns, coke and hookers.:P

Mr Benevolent · 19-12-2011 10:46pm

We're boned.

ilovesleep · 19-12-2011 11:02pm

Ghandee wrote: »

Can't take knickers off a bare ass!

But you can rape it

investment · 19-12-2011 11:15pm

I'm an investor and I've taken all my money out of the bank last week

The Euro has been over for months now

ilovesleep · 19-12-2011 11:21pm

Robdude wrote: »

I'm not an economist - can anyone explain what would happen if nobody gives money to the Eurozone? If the euro 'collapses' what does that really mean?

Would any country or currency benefit from the Euro tanking? Is this good news for China or the US?

If the Euro collapses it means that the money in your pocket, be it euro or a new currency will be worthless which means no more imports . Life would be somewhat livable without the all the fancy things that we have in our homes like tvs, cameras, ipads, phones, computers, although it will be very painful at first and a huge shock to the system..But over time we will get used to it.

Transport - people will not be able to buy cars and those with cars will not be able to fuel them. Oil, petrol and diesel would be too expensive. Many shops in many locations will run dry of supplies - food and toiletries due to the lack of transportation with suppies. We'd probably be looking at using a donkey and cart.

Clothing and shoes are imports too. When the clothing we have falls to rags we'd be looking at perhaps wearing potatoe sacks and using rope for a belt.

High unemployment due to companies closing. A new way of life would be stitching footballs for a living.

obplayer · 19-12-2011 11:33pm

ilovesleep wrote: »

If the Euro collapses it means that the money in your pocket, be it euro or a new currency will be worthless which means no more imports . Life would be somewhat livable without the all the fancy things that we have in our homes like tvs, cameras, ipads, phones, computers, although it will be very painful at first and a huge shock to the system..But over time we will get used to it.

Transport - people will not be able to buy cars and those with cars will not be able to fuel them. Oil, petrol and diesel would be too expensive. Many shops in many locations will run dry of supplies - food and toiletries due to the lack of transportation with suppies. We'd probably be looking at using a donkey and cart.

Clothing and shoes are imports too. When the clothing we have falls to rags we'd be looking at perhaps wearing potatoe sacks and using rope for a belt.

High unemployment due to companies closing. A new way of life would be stitching footballs for a living.

We coped before the Euro. Why can't we cope afterwards, after I admit a period (a week or two) of chaos? We joined the Euro, why can't we unjoin it?

obplayer · 19-12-2011 11:46pm

obplayer wrote: »

We coped before the Euro. Why can't we cope afterwards, after I admit a period (a week or two) of chaos? We joined the Euro, why can't we unjoin it?

Serious question. Before Ireland joined the Euro it had to buy goods from abroad. What, fundamentally, would change if we had to go back to the Punt?

hmmm · 19-12-2011 11:47pm

Crazy Horse 6 wrote: »

Plenty of rumours doing the rounds in the financial sector that this whole thing would collapse within a few days.

No there isn't.

hmmm · 20-12-2011 12:03am

obplayer wrote: »

Serious question. Before Ireland joined the Euro it had to buy goods from abroad. What, fundamentally, would change if we had to go back to the Punt?

There's lots of answers here already, but the downsides in summary:
1. Massive overnight inflation as the Irish punt falls in value, so everyone becomes instantly much poorer
2. A mess of legal contracts which have people owing money and repaying money in Euros - what happens now?
3. Our banks would be wiped out, along with people's savings
4. Massive cuts in public sector salaries and massive cuts in social welfare to bridge the deficit

Celly Smunt · 20-12-2011 12:06am

Euro in the gutter is of no use to anybody,Massive Losses for all nations,it won't be allowed to fail.

billybudd · 20-12-2011 12:19am

I doubt it will fail but even if it did it would not be the doomsday scenario everyone is suggesting, you would be worth less and things would be a tad more expensive, if the world made everything to expensive so people cant buy anything then what would be the point of that?

In short whether it is the euro or punt it will be fine, we could all do with losing a few pounds anyway.

billybudd · 20-12-2011 12:26am

Crazy Horse 6 wrote: »

Plenty of rumours doing the rounds in the financial sector that this whole thing would collapse within a few days.

It is called financial manipulation and yes alot of financial sectors are predicting its demise but only so they can profit from the panic of people shifting one currency to a different currency and then back again and lots of different little games they have going so they drive down the price of one thing only to buy it and only to sell it a week later when more calm enters the market.

These financial speculators make a million in a minute rather than a week because they manipulate mules into carrying these rumours into the national mindset.