the Business Forum and
the Economic Partnership
in Brighton & Hove
Homepage    BCRP Intranet    Funding    Events    Knowledgebase    Links    About us     Contact us
Key projects



Workforce development 


Business &

Property &
Development sites




Consultation opportunities

Brighton & Hove Business Forum
8-11 Pavilion Buildings, Brighton, BN1 1EE
Tel: 01273 735442
Email: info@brighton

© Brighton & Hove
Business Forum

News - 10 June 2012
Irish Taoiseach Enda Kenny; spitting tacks?

If I was the Irish PM, I’d be spitting tacks about the Spanish bank bailout; and back in the UK there won’t be another round of quantitative easing because it wouldn’t make a damned bit of difference!

If Spanish banks are to receive a no-strings attached €100bn EU bailout, the Irish government must be asking why they had to undergo the pain of EU imposed national austerity for the same sin. Although, ironically and unlike Ireland, it may make Spain weaker rather than stronger.

Despite the Spanish finance minister’s joy that apparently ‘with one bound they are free’, the bailout may not prove to be a ‘no-strings attached’ affair because the exact details are not out in the open especially the source of the funds that are going to recapitalise basket-case institutions like the nationalised Bankia.

As the BBC’s Robert Peston points out in his excellent blog; a lot depends on whether is comes from the outgoing European Financial Stability Facility [EFSF] or the incoming European Stability Mechanism [ESM]. Basically if Spain defaults on its debts at some point in the future the EFSF gets in the queue along with everyone else that has lent money. If the bailout funds are coming from the ESM, they have first call on whatever the country can manage to scrape together to repay creditors. So if it is the latter [and the rules would have to be bent if it is because at the moment the ESM can only lend to sovereigns] it is hardly a comfort to other lenders to know that they are likely to be even further back in the queue and, as Peston points out, “an ESM bailout would classify Spain as a second-class borrower in a formal sense and actually delay its rehabilitation”.

Of course the ESM could be granted a banking licence with theoretically limitless powers to lend to Spain, Italy, Portugal and anyone else who needed it in any quantity. But that's against EU rules.

Meanwhile in the UK, the Bank of England’s Monetary Policy Committee decided last week to keep interest rates on hold and not to add to the £325bn Quantitative Easing [QE] programme with another £50bn dollop. The reasons won’t be known until the minutes of the meeting are released but there is every possibility that they simply realised that it wouldn’t make any difference.

With the Eurozone lurching from crisis to farce and back to crisis, Germany playing chicken with its southern neighbours, Greece in danger of serious civil unrest, China struggling to keep control of its economy in the light of failing global markets and America’s recovery limping to a halt, the MPC seem to have decided that giving UK banks another £50bn to lock up in their vaults is probably futile.

As somebody said, “this is the new normal, get used to it”.

Shortened URL for this article:

Read related items on:
Economic growth
Bank of England
Peston, Robert

Browse our business Knowledgebase or search by keyword


15 December 2017
Brighton is among the best places to start a business due to their strong growth factors
15 December 2017
GTR consultation ends 20th Dec 2017 13 December 2017
Ethical Food StartUp Programme - Idea Generation Workshop 12 December 2017
Utilise Plus launch programme of energy efficiency grants and business support for SMEs 11 December 2017
City Centre Vacancy Rates Drop Slightly From Sept 5 December 2017
Innovate UK Announces Sector Competitions in Manufacturing and Infrastructure Systems 5 December 2017
GDPR, steps to early compliance 1 December 2017
The 29th Sussex Business Awards 2017 Winners Announced 1 December 2017
Old tech gear? Give IT a new lease of life 29 November 2017
Driving for Better Business Campaign launches 29 November 2017
ARKA Funerals sponsor Burning the Clocks 2017 with 'In Memory' lanterns 27 November 2017
Govia Thameslink launches third consultation phase on once-in-a-generation timetable restructure 23 November 2017
Coast to Capital Launches Brighton Mainline Alliance 22 November 2017
Calling all UK companies that have transport, parking and commuting issues to address 15 November 2017
Start-up Challenge Business Competition Offering £10,000 Investment to Young Entrepreneurs 15 November 2017
IUK Announces £10 Million Innovation Loans Infrastructure Systems Funding Competition for UK SMEs 15 November 2017
Sussex Food and Drink Grand Finalists Celebrate Success 10 November 2017
Meaning conference confirms speaker line-up: breeding a new army of business activists 10 November 2017
Positive body image documentary screening at Hove school 8 November 2017
Material Practices: Painting and Printmaking at the University of Brighton - Private View 8 November 2017
Economic Partnership kick starts city strategy consultation 8 November 2017
GTR respond to positive ASLEF referendum result 7 November 2017
350th employer signed up to the Brighton & Hove Campaign 7 November 2017
Rampion announces £4 million community fund 6 November 2017
The First Gamification Conference comes to Brighton 3 November 2017
Shoreham Port Welcomes New Commercial and Operations Director 2 November 2017
Burning the Clocks launches Crowdfunder for 2017 2 November 2017
The Gatwick Diamond Business Awards are now open for Entries 31 October 2017
Brighton Based Paxton Open New Centre for Technology & Innovation 27 October 2017
Adventures in risk taking for high growth businesses 27 October 2017
Can your business benefit from offering a 'world of work' experience? 27 October 2017
The Small Business Saturday Bus Tour launches across the UK for its fifth year 24 October 2017
Business Networking & Case Study Visit with the Sustainable Business Partnership 24 October 2017
Could you use an Energy Saving Workshop? 17 October 2017
Peter Blake raffle raises £2,290 for Middle Street School 17 October 2017
AMEX named major sponsor of city's bike share scheme 16 October 2017
Ropetackle Business Friends scheme 4 October 2017
BTN BikeShare: a successful first month 3 October 2017
PLATF9RM open at Hove Town Hall