They're not protecting "the Nation". They're protecting the management of the banks in a first instance. Then then the shareholders, and finally the creditors as well as people with more than €20k in deposits.


A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith

An Irish Government bailed out AIB before- in the 1980's when they bought an insurance company which turned out to have huge unquantified liabilities.  That left a very bad taste because AIB promptly upped dividends and top salaries etc. and the taxpayer got nothing.

I think ANY Irish Government would be v. uncomfortable with either AIB or BofI - the top two - being taken over by foreigners because there is a residual sense that they are committed to the Irish economy.

I think we may be coming close to the limits of what the Govt. would regard as a vital national interest and would be unwilling to defer to Brussels on.  Not sure what the legalities are, but collegial it ain't.

However there is also a sense that - e.g. the French would also act in their national interest if push came to shove - the difference is that smaller states are expected to be more deferential.

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