Translated "Avante!" Article by Jorge Cadima, Member of the International Department

The “Celtic Tiger”, which for years was known as an European integration “successful case”, ended up, devoured by both the European Union and the IMF. This is the fatal destiny of the capitalism of our days, “successful cases”. The very same has happened with Iceland,as previously with the “Asian tigers” or with Argentina. This time, the official version is that the Irish banks “went too far”. But July last, the two great Irish banks (the Anglo Irish and the Bank of Ireland) passed in their “ resistance proofs” which the European Union led unto their banking system.

“Excesses” always had the official seal of those who profited from the excesses. Which are not the same ones who currently will have to pay the bill. The 85 thousand million Euro are said to be money from the IMF and the EU “for Ireland”. But more than 20% (17.5thousand million) of the amount is Irish money, the most issued from the National Pension Reserve Fund ( in Financial Times, 10.11.29). Which will be plundered in order to be handed over to the banks. More specifically, to be handed over to the bank bonds’ senior creditors which will not “loose a penny”: “ Upon many debates , it was decided that senior bondholders, who had loaned money to Irish banks [ to commit “ excesses”- NA] were not to undergo any losses. “ No cuts are to take place on what concerns the senior debt” Olli Rehn, the EU Commissioner for economic and monetary issues stated”. (in Financial Times, 10.11.29)

And who are these senior creditors, not to be disturbed, while the Irish people will be cut short? According to the Financial Times ( on 10.11.23), the European banks are creditors of over 500 thousand million dollars of the Irish debt. The Bristish banks of 150 thousand million (6.6 % of the British GDP). The German banks come next with 139 thousand million dollars ( 4.2% of the German GDP). And tiny Belgium, the debt is 54 thousand million ( an astounding 11.7% of its GDP). The EU / IMF package was not meant to save Ireland , but instead, to save the European great capital financial centres, which was under the risk of being sheared, during the feasting.

Once more, the banks are rescued and the states are buried. Ireland’s debts are no more due banks, but to the EU’s states (through the EFSM and EFSF mechanisms). In the future, it will be said , once more, the states accounts are unsustainable, that there is the need to cut down on salaries, pensions, public services. And the plunder carries on: “ the Spanish government is studying on the National lottery and airports managing company shares’ sale, whilst Ireland faces the electricity and gas sectors privatizations, as part of a European Union and IMF conjoint aid package, (in the Telegraph, 10.12.01 ). Nor even the tiger’s carcass will be left over. If ever this current European tempest has any virtue, is of throwing away a good amount of the fakes which have been sold out ( together with right-wing or “left-wing” arguments ) on both European capitalism and the European Union. Each day it becomes clearer the EU is nothing, but a great capital command centre.