So I met the Troika yesterday…

So I met the Troika yesterday. And it was a very interesting meeting. From their point of view the Government’s programme, which is predicated on economic growth, may need tweaking to reflect changing economic conditions. In short, they’re not sure Plan A is working and they are open to a plan B.

I was delighted to hear they were aware of the difficulties that the current approach to fiscal consolidation is causing. They felt that the growth projections for the country are broadly right but this year’s growth would be lower than expected. In response, I’ve called on the government to finally come up with policies that put citizens ahead of bankers’ balance sheets and conclusively address the household debt problem.

Troika representatives were conscious that cost of living in Ireland was too high, stressed the need for internal devaluation, and stated that the implementation of solutions to the mortgage crisis has been too slow in coming.

They also said there were opportunities for substantial reductions in public sector spending that wouldn’t result in service provision cuts. In particular they referenced a threefold increase in health spending during the boom years, without a corresponding increase in service provision.

We also discussed the issues of bondholder payment. it was pointed out that it was the previous government and not the Troika that insisted on payments to unseen unguaranteed bondholders of the pillar banks.

  • 4dspammers

    Hey Stephen, great work. “it was pointed out that it was the previous government and not the Troika that insisted on payments to unseen unguaranteed bondholders of the pillar banks.” By who? Donal

  • Odeamartin

    Ya, Donal I re-read this and not pre-empting Stephen’s reply, but it can only be the Troika who pointed it out. This is stunning, and should be screamed about. Marching soldiers of destiny and it is not inconceivable (I normally distrust even the merest hint of conspiracy due to the lack of intelligence that would be required to organise same) that there is a Watergate moment yet to be unearthed on Bankers and Previous Government


  • Pdm555

    I hope FF are remembered for this.

    • Nanabernie

      Stephen, please find out who these bond holders are. Keep up the good work.

      • WoW

        Here they are:

  • Noreen

    Really interesting last sentence! But yes, can we get rid of the passive voice and say who pointed it out? The passive voice does nothing only remove accountability in politics. Otherwise, Stephen, you’re doing an amazing job – yours is a desperately needed voice.

  • and now ff are on the rise again! i believe a stronger and better alternative is needed quick smart!

  • Maggie

    Stephen, your last paragraph is amazing.  Please pursue this matter and insist on answers. Who are these ‘unseen unguaranteed bondholders?  Is there a connection with any present or past Irish politician?

  • Walsh 32

    So what your saying is the current government didn’t know this until now??? Now that I find very hard to believe.

  • Deccrowe

    Stephen isnt one of your better friends in the business Denis o Brien ??? not saying you are not a bad politician but you are not an honest one just like the rest

    • How does that make any sense?

  • P. Mckenna

    Stephen, do they mean the previous government were insisting on it as part of a wider ECB/EU agenda to insist on it, or that our own government, for its own reasons, wanted it? 
    The end result is the same of course, but if it is the latter, I’m going to riot. 

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  • Kbmcguckin

    Which govt insisted on repaying the bh Stephen?


    We need some clarity please.


    No disrespect Stephen but if you are going to invite comment on your site is it unreasonable to expect you to contribute, in a contemporaneous manner? Some of those leaving comments have asked legitimate questions in relation to the above article in particular, who specifically in the Troika told you that it was the previous Government that insisted that the bondholders be paid and secondly, will you be willing to repeat this under oath when the inevitable public enquiry is held (probably ten years from now…) ?

  • Mary K

    The Troika are not the only ones who may not be sure that Plan A is working. But there is a Plan B. It calls for state investment in employment and more progressive taxation. Check out

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