Ireland has struck a long-awaited deal to ease the burden of the debts it took on to rescue its banking system.
Prime Minister Enda Kenny won European Central Bank approval to stretch the cost of bailing out Anglo Irish Bank over 40 years.
It had been due to pay it off in 10 years, straining the state’s finances and hobbling the economy.
Kenny told lawmakers: “I believe that today’s agreement is a significant milestone. It closes a sad and tragic chapter in our economic and political history. We are now a poor but perhaps a wiser people from the lessons that we have learned.”
The deal follows two years of negotiations between the ECB and Irish officials.
It will cut Ireland’s borrowing requirements by 20 billion euros over the next decade, shaving one billion euros off its annual budget deficit.
That puts Dublin on track to end its reliance on European Union and International Monetary Fund
loans by the end of this year.
The deal took so long to work our because the ECB was worried that easing the crunch in debt repayments could set a precedent for other countries, such as Spain, which are also dealing with large bank debts.
However, European leaders were also keen to offer a success story from the region’s debt crisis to encourage both voters and potential investors.
Replacing promissory notes, or IOUs, given by Ireland to the former Anglo Irish Bank with longer-term government bonds will help Dublin emerge from the policy strictures of an EU-IMF bailout package on schedule this year.
- 1Chomsky says US is world’s biggest terrorist | euronews, the global conversation
- 2euronews live TV - News | euronews : the latest international news as video on demand
- 3Chomsky – a rebel with a cause | euronews, world news
- 4Anti-ISIL demonstrations turn violent in Ethiopia | euronews, no comment
- 5The migrants tragedy in the Mediterranean sparks creative satirical response | euronews, world news
- 6Europe is ‘bluffing’ over Greece-Russia relations – analyst | euronews, news
- 7French Alps plane crash treated as suicide and mass murder by co-pilot | euronews, world news
- 8Woman carries can of water on her head along Paris marathon | euronews, world news
- 9Former IMF chief ‘under investigation for money laundering’ | euronews, world news
- 10International tv news | euronews: European and International tv news bulletin
- 11Pope Francis washes Rome prisoners’ feet on Holy Thursday | euronews, world news
- 12ECB chief Mario Draghi unhurt after protest during speech | euronews, world news
- 13International news | euronews, latest international news
- 14eurovibes - a selection of Europe’s best music talent
- 15Portuguese researchers discover the secret of Mind Control | euronews, futuris
- 16Indonesia executes five foreigners despite protest | euronews, world news
- 17French prosecutor: Germanwings co-pilot appears to have crashed plane deliberately | euronews, world news
- 18International breaking news | euronews online world breaking news in video
- 19Fighting Boko Haram: Chad aims to ‘destroy’ militant group | euronews, world news
- 20Energy-generating clothes and smart lights join the Internet of Things | euronews, hi-tech
Wires > Business
- 12:38 CET India’s Ratan Tata buys stake in Chinese phone maker Xiaomi
- 11:53 CET Nokia denies return to phone manufacturing
- 10:44 CET Ryanair boss eyes 10-15 percent cut in fares in next two years
- 10:09 CET Analysis – If Greece falls, no one wants their prints on the…
- 06:25 CET Cuts to pay and perks trigger flight from China’s state banks
- 05:32 CET Germany hints at preparations of a Plan B on Greece
- 02:48 CET Greece, lenders must reach deal by early May, Deputy PM tells paper
- 23:07 CET Ferdinand Piech resigns, ending an era at Volkswagen