Irish Examiner editorial comment: Coalition negotiations - EU summit makes early deal vital

AS the negotiations about forming a coalition government gather pace it is not too hard to see where compromise might be possible.

There are no obvious stumbling blocks and an early agreement should be reached.

All of those involved in the talks, and Labour’s conference next weekend, must be aware of the urgency imposed by the impending EU summit where decisions on eurozone stability arrangements, including our vital 12.5% corporation tax rate, are anticipated.

Positions agreed this week between Fine Gael and Labour need not be final but they can be stepping-stone arrangements open to review during the life of the 31st Dáil if conditions allow.

All involved are aware of the urgency and it is unlikely, nor would it be acceptable, that intransigence by either party might weaken Ireland’s position at the March summit. It is reassuring both parties can call on senior figures with considerable experience in these kind of negotiations.

Yesterday’s remarks by European Union economic and monetary affairs commissioner Olli Rehn are further encouragement for the negotiators.

He conceded that pricing for rescue loans will be looked at from a European perspective. Speaking in Brussels Mr Rehn said that, “we have the common goal for Ireland to revive its growth dynamics and succeed in ensuring its debt sustainability”.

Though this declaration is not sufficiently unambiguous to suggest we immediately kill the fatted calf it does hint at a degree of possibility that might make it easier to be less pessimistic about our seemingly impossible debt burden.

Recognising this, Enda Kenny will attend an EU meeting this week to press for reduced interest charges and a review of the European Central Bank ruling which protects senior bank debt holders from sharing the losses incurred by Irish banks.

Though there are many issues to be resolved during this week’s talks reaching a strong, united position that will allow Ireland present the best possible case in March must be the priority.

If this can be done, and there is no reason it cannot, it becomes increasingly difficult to see how the ECB can insist that Irish taxpayers bail out the financiers who took a multi-billion euro punt on Anglo Irish and the other casino banks and lost — even if those banks are powerful forces in the French and German economies.

European bankers may be indifferent to the reality that Irish taxpayers are, in the great majority of cases, as culpable in our banking collapse as German teachers or French bus drivers but it’s up to us to convince European politicians that that is the case.

If we can do that all the politicians have to do is find an equitable and realistic balance between the needs of Europe’s bankers and its citizens.