Sunday, February 27, 2011

Ireland wants to renegotiate its rescue plan with the EU

The Irish opposition leader Enda Kenny, began Sunday the negotiations for a coalition government after winning legislative elections without an absolute majority, while demanding a renegotiation of the Brussels immediate rescue plan for the island.

Without waiting for the announcement of final results, which should not occur before Sunday night or Monday, Enda Kenny on Saturday evening claimed victory.

According to partial results for mid-morning on Sunday about 80% of seats, Fine Gael's education (center) won over 36% of the votes, humiliating the ruling party, Fianna Fail.

The centrist organization, which dominated Irish politics for 80 years, rolled out: with only 17.4% of the vote, she should see the number of seats divided by three.The vote also marks the end of the political career of outgoing Prime Minister, Brian Cowen, who did not represent.

But the tsunami, tidal Fine Gael has not been sufficient to confer an absolute majority, forcing Enda Kenny to seek an alliance with Labour, a formation which left with the Fine Gael has already ruled several times.

The Labour party has raised nearly 20% of the vote.

"Talks immediate Fine Gael and Labour in a coalition," a title in the Sunday Business Post, saying "inevitable" a coalition rather than a form of ad hoc agreements with independent members.

"I will explore all options," said Enda Kenny on Saturday, stressing however that voters had given him a "massive support" for a "strong and stable government."

"I do not want things hanging. I will decide very quickly," he said.The leading theory has until 9 March, the opening of Parliament and his inauguration as Prime Minister to form his government.

The Labour leader, Eamon Gilmore, confirmed Saturday night that "the most likely outcome" would be a "coalition", without dwelling on the many obstacles to overcome.

Of "intense discussion" on the subject will be necessary, and the Business Post said, to "bridge the chasm" between the Labour and Fine Gael, in particular on the austerity program implemented by the outgoing government.

While Fine Gael broadly supports the budget cuts imposed by the outgoing government, Labour intends to reduce the pushing of two years, to 2016 against 2014, the deadline that had set Brian Cowen to bring the deficit to 3% of Gross domestic product, against 32% in 2010.

The bailout Island International, signed with the European Union and the International Monetary Fund, awarded Dublin until 2015 for curbing public deficits.

Enda Kenny recalled on Saturday night that the renegotiation of the plan was a priority. "We will act on it next week.I already had contacts that very day (Saturday), he said, stressing the urgency of the calendar.

March will indeed decisive for the euro area, with marathon negotiations to develop a defense against the debt crises.

During the campaign, the future prime minister has promised to demand a reduction in the rate of interest at which EU ready to Dublin, under the assistance plan, and he deems "punitive." It also intends to ask the bondholders that they bear some of the losses.

Negotiations in Brussels on the plan and in Dublin on a coalition: Enda Kenny will know "no honeymoon," warned the Sunday Business Post.