Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Yes, this may not be popular at EU/ECB level, but it comes back to natinal interests trumping international co-operation. I'm not saying the Irish are being selfish, I suspect they are simply taking advantage of an obvious business opportunity which will be highly profitable.

I think there was near panic in Irish Government circles when the banks went into freefall, so this is probably more a case of a national Government being able to act much more quickly than the EU when national interests are seriously threatened.

The banks are being very silly and short-sighted if they now seek to use this for competitive advantage vis a vis other banks.  The Irish Government will come under extreme pressure to restrict the guarantee to bank accounts set up in Ireland or by Irish residents or in some other way to prevent a tsunami of money washing over Ireland and leaving everyone else high and dry.

The US has the advantage of having institutions - like the FED - which can act very dramatically and rapidly in response to a crisis.  The EU Commission and Central Bank are a joke by comparison.  The Irish Government probably had little option but to act quickly - but now needs to modulate its response more finely.

In the meantime the EU needs to come up with a more concerted response - or else national interests will take priority.  

What a fine mess the US got us all in!  However if it results in a more dynamic EU decision making structure and process then some good will come of it.  Lisbon is beginning to look inadequate and unt of date already!

Vote McCain for war without gain

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed Oct 1st, 2008 at 11:01:46 AM EST
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