From New York to Jakarta, global media focuses on Dublin

INTERNATIONAL attention turned to the possible hiking of Ireland’s low corporation tax rate and movement towards an expected deal with European authorities and the IMF over Ireland’s battered banks.

Global media continued to speculate last night as to the amount of money the Government could secure in a financial aid package.

There were also hints that major global powers could step up to help, especially if a bailout of Ireland fails to ease worried markets over other debt-ridden EU states.

The New York Times, from Paris, speculated that financial support for Ireland from any deal being discussed in Dublin could amount to at least €50 billion.

Any larger aid package would take Ireland out of borrowing from the markets for some years, it said.

Meanwhile, the head of the European Financial Stability Facility, Klaus Regling, told French daily Le Monde that the financial mission in Dublin would need around two weeks.

But other global media seemed certain an announcement is due next week about financial help from the EU and the IMF. The Government would also publish the four-year budget plan at roughly the same time, it was suggested.

Reuters reported that as markets closed the euro steadied on hopes for the Irish aid package. The yield on benchmark 10-year Irish bonds also fell 9 basis points to 7.8% by yesterday.

But the Guardian newspaper in a commentary piece online questioned whether all the financial cuts and budget changes advocated by European authorities to rein in Ireland’s debts were needed.

Any demands to cut wages or adapt tax regimes in order to get financial aid could be left out, it said. Instead, EU authorities could give Ireland a smaller temporary fiscal stimulus.

Ireland had a strong hand in negotiations, the piece said: “The European authorities and their banker allies do not want to see Ireland default on its debt or exit from the euro.”

The Wall Street Journal focused on calls for the Taoiseach to go, noting that €600 million Terminal 2, which Brian Cowen launched, had been “dreamed up during the heady days of the Celtic Tiger”.

The journal added: “No political leader here has admitted to feeling shame at the prospect of Ireland losing its sovereignty.”

Elsewhere, the online Jakarta Globe proposed that Ireland’s crisis was “China’s chance to shine” and that any financial assistance offered by the Asian giant to ailing EU states “could be an enormous opportunity for China to vault to a leading global role”.