It seems the election was just some sort of weird dream we had.
Ireland’s new government will stick to the fiscal targets laid down in an EU/IMF rescue package, a source familiar with the coalition deal agreed between the two main political parties said on Sunday. ~ Reuters
Taoiseach-in-waiting Enda Kenny has conceded that his government is unlikely to burn senior bondholders in the banks, despite Fine Gael’s pre-election promises. ~ Irish Examiner
So the parties decide to drop what most would consider the central planks of their campaigns, not only backing away from making the senior bondholders pay for their mistakes but agreeing to the original timetable rather than Labour’s (minor) blow-softening of an extra year. Two thirds of the fiscal adjustment will still come from cutbacks, rather than the 50/50 split with tax increases Labour wanted. Essentially, Labour are adopting FG’s manifesto – and Fine Gael are adopting Fianna Fáil’s.
Why, when it cannot work?
Because no plan can work – none at least that requires the exchequer to miraculously break even in just a few years. The only way we could make our income balance our expenditure that soon is by burning down the country for the insurance.
“the coalition agreement, clinched after midnight, seems designed to curry favor with the fiscally conservative Germans” ~ Reuters again
Ah. I get it. The CDU won our election.
So it’s a sort of masochism tactic. Look, we’re taking our medicine. Watch us whip ourselves bloody. They hope that by showing a snivelling level of victimhood they will eventually elicit the pity – and the funds – we need to stop the economy smashing into the landscape.