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Spain gets better deal than Ireland

10 June, 2012 - by Pearse Doherty TD

Speaking today after news reports confirmed that the European Union had agreed to recapitalise Spanish banks to the tune of €100bn Sinn Féin Finance spokesperson Pearse Doherty said that the loans were to be provided “at a lower cost, with no additional austerity or loss of sovereignty”. The Donegal deputy challenged the government to explain “why it was not able to secure these kinds of terms when the Spanish government could”.

Deputy Doherty said:
“News broke late last night that the European Union was willing to recapitalise Spanish banks to the tune of €100bn.While the full details will not be known for a number of weeks there are already clear differences between what the Spanish government secured this weekend and what the Irish government accepted when they took office.
“News reports in Spain are indicating that the rate to be charged on loans to Spain is 3%. This is below the current blended interest rate of 3.7% on our Troika loans.
“There will also be no additional austerity imposed on the Spanish people nor will there be any loss of sovereignty by the Spanish state as a result of these loans.
“All of this means that Spain will pay less for their loans that the Irish government currently does. Spain’s debt and deficit reduction strategies will be determined by their own government. There will be no Troika reviews and no detailed memorandum of understanding dictating tax increases, cuts in social welfare payments or sale of valuable state assets.
“Clearly the Spanish government has secured a better deal than that accepted by the Irish government. Madrid resisted EU attempts to impose additional conditionality and defended their economic sovereignty and won. And they secured loans at a lower cost.
“Many Irish people looking at the deal today will be asking themselves why is their one set of conditions for us and another for Spain. More importantly they will be asking why the Irish government was not able to secure these kinds of conditions.” ENDS

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