is this european co-operation

getz

unlike ireland -the uk first checked with the EU first--also the UK banks do not deal in euros-next question?

thehighground

molloyjh wrote: »

I would imagine the major difference there is that NR was an isolated incident whereas we are backing ALL of our banks. Additionally, unless I'm hugely mistaken (which has happened before :pac:), NR do not have "high-street" branches here, and certainly were not advertising (like Irish Nationwide did) the bail out as a reason to transfer your business! The fact that the NR incident happened outside of the recession troubles when other banks were still just as secure as a nationalised NR also meant that it was far less significant a move by the UK Government.

And yes, if we weren't part of the EU we could have just bailed out domestic banks, but then if we weren't part of the EU would we have been able to afford to (see my initial post)?

It was a major difference - they NATIONALISED Northern Rock. And then cried like babies when Ireland moved to protect its own interests. You may dislike Irish nationalism and everyone elses nationalisms, but that is what you have to deal with in the EU - every country is going to look out for their own interests first and other EU countries second. Its tough on small countries, but there you go.

Do you really think that Irish fund managers would not have known about Northern Rock and the state of Irish banking? And I don't think Irish Nationwide actually advertised to the public. Someone from Irish Nationwide sent an email around.

thehighground

getz wrote: »

unlike ireland -the uk first checked with the EU first--also the UK banks do not deal in euros-next question?

Wrong - Cowen contacted the EU the night before announcing the guarantee. He was told we (Ireland) were on our own. After the deed was done, they started talking about competition laws.

So, you telling me that the EU said that nationalising Northern Rock was OK (anti-competitiveness, how are ya?).

It gets better.

djpbarry

thehighground wrote: »

Wrong - Cowen contacted the EU the night before announcing the guarantee. He was told we (Ireland) were on our own. After the deed was done, they started talking about competition laws.

"They" being the British government.

thehighground wrote: »

So, you telling me that the EU said that nationalising Northern Rock was OK (anti-competitiveness, how are ya?).

I don't believe anyone complained to the Commission. I could be wrong.

Hitman Actual

thehighground wrote: »

Wrong - Cowen contacted the EU the night before announcing the guarantee. He was told we (Ireland) were on our own. After the deed was done, they started talking about competition laws.

So, you telling me that the EU said that nationalising Northern Rock was OK (anti-competitiveness, how are ya?).

It gets better.

I'm not quite sure of the argument here, but the EU's response to both the Irish rescue plan and the NR bailout seems to be very similar. Here's just a couple of links:

http://europa.eu/rapid/pressReleasesAction.do?reference=IP/07/1859

http://www.guardian.co.uk/business/2008/apr/02/northernrock

WorkHard

there is nothing wrong in bailing out banks when the government becomes a shareholder, I think.