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Social Justice Ireland statement on Anglo/IBRC agreement
Deal on Anglo/IBRC compounds the injustice of the original deal and copper-fastens it for generations to come.
The liquidation of IBRC and the related changes agreed between the Irish Government and the European Central Bank (ECB) has compounded the injustice of the original deal. It is clear that Government and the European Central Bank have decided that banks must be protected ahead of people and that bank gambling debts must be repaid by those of us who had no hand, act or part in causing the banking collapse in the first place.
This new agreement is unjust for at least three reasons:
- While the agreement holds the potential to ease some of the current budget austerity it is unjust that Irish people continue to carry the burden of repaying much of the losses incurred by reckless bankers and speculators who gambled their money in Anglo-Irish Bank.
- It is also unjust that the systematic transfer of resources to the rich from the rest of us has been copper-fastened in this new agreement. In recent years resources have been transferred from low and middle-income people to those who are rich e.g. the bondholders and speculators who benefitted from the Anglo deal. This process is now copper fastened as the sovereign takes responsibility for the debt.
- A further injustice can be seen in the fact that while it has been agreed by the European Council that banks and financial institutions will have to share in the ‘hit’ if they crash in the future, Ireland has been blocked from benefitting from this facility where the Anglo crash is concerned.
Social Justice Ireland fully acknowledges the gravity of the situation which has been caused by a variety of groups including bankers, regulators and government itself. However, decisions in this context should be fair and just.
Social Justice Ireland believes a fairer future is possible. For that to emerge, however, a different approach is needed which prioritises investment, promotes public services, protects vulnerable people and communities and ensures its development is underpinned by an equitable tax system.
Overview of moving from Promissory Notes to Soverign Debt Presentaion can be downloaded below.