EL AVIV (MarketWatch) — After weeks of insisting that it needed no bailout, Ireland conceded Sunday that it will need a financial rescue package from the European Union and International Monetary Fund, according to media reports.
Ireland’s finance minister, Brian Lenihan, declined to specify a figure except to say that it would be less than 100 billion euros ($136.7 billion), the reports say.
The Sunday Times of London had reported earlier that Ireland would seek a package valued at as much as 120 billion euros.
Lenihan said Ireland was running a deficit of $26 billion and could not finance that amount at current market rates, the reports say.
Lenihan also said Irish officials also were seeking backing for Ireland’s debt-burdened banks.
As a result of this bailout package, Ireland has agreed to raise property taxes on every household in Ireland by 500 euros a year and to slash government programs
But guess what won't go up?
Ireland has one of the lowest corporate tax rates in Europe - 12.5%.
But they refuse to raise taxes on corporations.
They say it will hurt the economy.
I'm not kidding.
That's what they say.
So the corporate tax rate will stay the same but everybody else will undergo the "austerity measures."
We really do live in feudal times once again - only this time the lords of the manor are the corporations.
Next up on the bailout docket are Portugal and Spain.
It's good to know all the financial geniuses and business wizards who brought us the Tech Bubble, the Housing Bubble, securitization, the credit crisis and the financial collapse of '08 are paying for their misdeeds.
Oh, wait - they're not.