No debt deal could have serious consequences

The following pithy quote was taken from one of the protestors who last weekend turned up for the 100th Ballyhea march against bank debt and bailing out the bondholders: “We need to get this European monster off our backs.”

So far, this opinion represents a minority view in this country. Most people are still well disposed towards the EU. But that could change quite soon if there is no deal forthcoming on the bank debt. If this were to happen it could have very far-reaching consequences.

The Government suffered a setback last week when its preferred solution to restructuring the €30bn in promissory notes was rejected by the ECB. It is believed the Frankfurt-based institution wants the Government to use the ESM to wrap the promissory notes into a long-dated bond.