Irish Banking Turmoil

High debt and critical banking system in Ireland has brought several discussions and attention last days among the Commission and some national finance ministers, representatives of International Monetary fund and European Central Bank. There is the request for Ireland to accept national bailout.

To clarify the situation, banking system in Ireland aiming to critical point and suffers from problems with liquidity. First there was a denial about any discussions and negotiations between Irish representatives and above mentioned bodies. However, now it is admitted that discussions about bailout and financial aid are in progress. Irish enormous indebtedness creates the pressure on Euro and other indebted countries, can endanger whole stability of Euro-zone and spread debt crises. Because of that reason, there is mainly in big EU countries interest to help and provide the financial aid (mainly from European Fund of Financial Stability) for Ireland. The instability of situation creates further insecurity at bond market, investors and developers.

Ireland is currently refusing any financial help and proclaiming manageable situation, at least till June 2011. Also there are disputes in Euro-zone whether provide the help, as it was mentioned, this interest is mainly in bigger economies of EU. The reason is also support in empowering the role of ECB, which buy considerable amounts of bonds of debtor nations and consequently would be able to regulate returns. Against this stands also Luxembourg premier Juncker pointing out that financial should be provided to those states without resources not for lowering bonds┬┤ returns. And Ireland , as proclaimed, still have some resources. Because of its indebtedness, they are supposed to submit fiscal plan how they are going to handle the situation and lower the debt in short- and middle term.

The discussions are still going on. This critic situation is still the reflection from last financial crises and real-estate bubble. The defective financial, bank and monetary system has not been changed after the crises, just attempts for little stabilization and some sustain of its unsustainable character. Corporate banking system together with national and multinational institutions, established on debt money creation or fractional reserved system, will never solve real problems and would be never able to provide necessary resources were are needed, even cause further debt on other side. This situation is not exactly the same as in Greece, but similar ones can happen in future in other countries in EU (most vulnerable indebted countries such as Spain, Portugal,..). Chronicity of deficient financial system will be still showing its leaking parts. And will have to be always solved by means of taxation and cutting social expenses. Banking system established as business enterprise aims for profit and hand in hand of governmental supports influences and has impact on whole inhabitants.

Because of that, Young European Greens refuse this exploitation, economic suffer, and earn money for not self-use and security but paying back and supporting institutions┬┤ profits and debts. The Euro-zone and EU states are established and joined on solidarity, so it is understandable that problems have to be solved together and help should be provided. But we are calling for the change and inevitable reform of system in general. Public has to have the right of money use and alternative monetary networks, for interest-free money that would secure build of public properties and secure public needs, created through public spending. People cannot be tools for politics and financial businesmen, resp. financial institutions, but policy and finances should be tools for people. We should not stay caught in net, but create non-egoistic and public nets that create general social wealth not supporting corrupted clerical stuff.