Re:Apple will start paying $21B in back taxes to Ireland
by rusk on Wednesday April 25, 2018 @06:07AM
(#16920089)
You are correct in saying this is a leak in the EU system. You could say it relates to the fact that what you have is a centralised money system but with a federated reserve.
The EU banking system as a whole was very weak. Optimistically configured you might say. When the economy plunged it sent ripples right across the European banking sector which essentially were contained in Ireland, which as a small economy could take the hit without affecting the rest of the continent.
If you think about it, there's no way the sums that were lost in the banking crisis could ever have been vested in a small country like Ireland. There were creative financial strategies going on everywhere and Ireland was only a single node in all of this.
When you look closer at the whole thing, a lot of the money lost was due to political decisions in the midst of the crisis, rather than purely financial mismanagement in the years before.
Here's a few. Ireland being forced to take on payment of "subordinate" bond holders [0]. The bank guarantee [1]. The failure to nationalise (in time) what was effectively a financial time bomb [2]
Ireland was a patsy for the failures of the European system. As a weak link in the chain Ireland naturally took the fall, and many were outraged for a time, but now in light of Brexit everyone's quite happy to be such a significant debtor.
The EU banking system as a whole was very weak. Optimistically configured you might say. When the economy plunged it sent ripples right across the European banking sector which essentially were contained in Ireland, which as a small economy could take the hit without affecting the rest of the continent.
If you think about it, there's no way the sums that were lost in the banking crisis could ever have been vested in a small country like Ireland. There were creative financial strategies going on everywhere and Ireland was only a single node in all of this.
When you look closer at the whole thing, a lot of the money lost was due to political decisions in the midst of the crisis, rather than purely financial mismanagement in the years before.
Here's a few. Ireland being forced to take on payment of "subordinate" bond holders [0]. The bank guarantee [1]. The failure to nationalise (in time) what was effectively a financial time bomb [2]
Ireland was a patsy for the failures of the European system. As a weak link in the chain Ireland naturally took the fall, and many were outraged for a time, but now in light of Brexit everyone's quite happy to be such a significant debtor.
[0] http://www.thejournal.ie/troika-warned-a-bomb-will-go-off-in...
[1] https://www.irishtimes.com/business/financial-services/night...
[2] https://www.irishtimes.com/news/government-to-nationalise-an...