Bankers' criminal negligence, political incompetence and the ECB have all combined to dump the 'costliest' bailout in history on to the Irish taxpayer.

Last Thursday was to be the day that Ireland would finally liberate itself from the worst financial crisis in its history.

But what happened?

We, the taxpayers, shovelled another €24bn into our busted banks (of which only two will be left standing); Ireland was shafted by the ECB, which failed to deliver on a promised medium-term funding facility; the Government U-turned on its election promise to burn bondholders; and events in Spain and Portugal heightened the stakes even further.

It was all so different just seven short days ago.

Read the rest of the story here: Sunday Independent

European authorities and the International Monetary Fund believe Ireland and Greece can sustain their debts while it is up to Portugal whether it joins them in seeking help, the head of Europe's rescue fund said. Fears Ireland will not be able to shoulder the burden of one of the world's most costliest bank bailouts have overshadowed the government's pledge to recapitalize its financial system by 24 billion euros and draw a line under its woes.

Klaus Regling, head of the European Financial Stability Facility, said last week that there were risks to the assumption that Greece would pay back its debts, but he did not identify any similar risks to Ireland in an interview with the Irish Times on Saturday.

"The assessment of the three institutions that have the task to make this kind of assessment -- the IMF, the European Commission and the ECB -- is that these countries will reach a sustainable debt situation at the end of their programmes," Regling told the newspaper.

"Portugal is struggling internally whether they should ask for assistance or not, we shall see, it's their decision. It's these three countries that will have serious problems for a while, but not the euro area as a whole."

"Spain overall is in much better shape. There's no programme, no need for financial emergency assistance in Spain."

Reuters, Apr 2, 2011, 05.18pm IST 

THE TIMES OF INDIA

Holders of Irish bank bonds should take losses instead of the Irish Government footing the bill for their bailout, European Central Bank governing council member Axel Weber said today.

Mr Weber, who is stepping down from the German Bundesbank at the end of April, said that it was a big mistake for governments to make taxpayers liable for all bank risks.

"To save a country's banking system, it is not necessary to write a blank cheque for the total balance sheet of the banking system," Mr Weber said during a panel discussion at German Banking Day.

"In Ireland, the question is whether the banking sector has to be saved as a whole," Mr Weber said.

"Would it not be a better route to isolate deposits, to minimise losses to Irish taxpayers and to find a complete solution ... with private sector participation instead of buying them out."

Mr Weber also said banks must participate in future crisis resolution. "There must be a participation of the banking sector in the solution of future crises," he said, and added: "It must be absolutely automatic as part of the investment conditions. Then it's clear and priced in from the very beginning".

Mr Weber also said markets are likely to keep euro zone periphery government bond yields at a high level for some time.

irishtimes.com - Last Updated: Thursday, March 31, 2011, 17:33