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Irish `caved` in too soon on bailout, says FDP rebel
Date 12/05/2011 15:48  Author webmaster  Hits 964  Language Global
12 MAY 2011

By Derek Scally | Irish Times

IRELAND “CAVED in too soon” to EU pressure to accept a bailout, according to a rebel from German chancellor Angela Merkel’s coalition partner.

Free Democrat (FDP) parliamentarian Frank Schäffler suggested that not everything being demanded of Ireland is “in its own best interests” while French and German national interests explain pressure for Ireland to raise its corporate tax rate.

“At heart Ireland caved in too quickly to the pressure of the larger countries, it was in effect forced into the rescue fund,” Mr Schäffler said. “That was to calm the markets but they haven’t calmed, which is the lesson for the future: rescue funds don’t solve the problem but act like oil on the flames.”

At tomorrow’s FDP conference in Rostock, Mr Schäffler and 14 supporters will present a motion calling for the Bundestag to halt German ratification of the permanent EU rescue fund (ESM).

They argue that it will “hobble” member states by making it difficult to pursue responsible finance politics and self-responsibility. They want a European insolvency law with obligatory creditor involvement and a new measure for states breaching euro zone rules to “leave for a short time”.

Finally, they want a robust eurozone sanctions mechanism where punitive measures cannot be halted by heads of state.

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