Daily Archives: March 14, 2012

Yesterday, the European Commission slapped down a request by Ireland to defer a €3.1bn payment related to its banking debt.

“I actually wonder why this has to be asked at all,” said the EU’s top economic official, Olli Rehn. “The principle in the European Union and the long European legal and historical tradition is, in Latin, pacta sunt servanda – respect your commitments and obligations.”

So what commitment is Ireland trying to avoid, and why? Jamie Smyth, the FT’s Dublin correspondent, answers our questions.

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Most of officialdom has been referring to the second Greek bailout, formally launched today, as a €130bn rescue. But the first 189-page report by European Union and International Monetary Fund monitors makes clear it’s actually a lot larger, though the actual size depends on how your measure it.

In the latest in our occasional series “We Read Brick-Sized Bailout Reports So You Don’t Have To”, Brussels Blog will attempt to explain why the figures have gotten so confusing and the bailout is probably better described as a €164.5bn rescue. Or maybe it’s €173.6bn.

The key thing to remember is that the first €110bn Greek bailout was originally supposed to run through the middle of next year and its remainnig funding will be folded into the new package and added to the €130bn in new funding. According to the report, €73bn of the first bailout has been disbursed, leaving about €37bn left.

But here’s where it gets slightly complicated. Read more