The EU finds itself in a very weak bargaining position as they try and force aid on Ireland.
- The government is toast, whether they take the bailout or not.
- The populous is furious at anyone in a suit, so foreign bureaucrats are not likely to get the warmest of Irish welcomes…
- Ireland doesn’t need the cash just yet.
Try jamming tough terms down Ireland’s throat (like a hike in the sacrosanct corporate tax rate) this week and you’ll likely get your arse kicked all the way back to Brussels…
A weak package is good for Ireland but very bad for the EU, which wants to be able to show that it is requiring tough reforms in exchange for generous financial terms.
In the end, the EU will blink, Ireland will get its cash and Portugal and Spain will remain in the cross-hairs.
