- Oregonians flee in face of fast-moving wildfire as homes go up in blaze
- Eric Holder: ‘Racial animus’ fuels opposition to Obama and me
- Sgt. Bowe Bergdahl to return to active duty at Fort Sam Houston
- Israel says it’s downed drone along southern coast
- Despite offensive, Gaza rockets still hit Israel
- Extra-time goal gives Germany World Cup title over Argentina
- Strong quake hits Japan, triggering tsunami
- Sniper heaven: Pentagon’s self-guided bullets leave enemies nowhere to hide
- Violent gang taking advantage of immigration crisis, using border as recruiting hub
- Medicaid enrollment continues to soar under Obamacare, administration says
Infighting threatens bailout in Ireland
Fianna Fail rebels seek to oust leader
Question of the Day
DUBLIN | Political infighting engulfed Ireland on Tuesday, threatening to trigger a quick election and delay a massive EU-IMF bailout. Rebels from Prime Minister Brian Cowen’s own party pressed to oust him and opposition leaders demanded an election before Christmas.
At stake is the future course of the potentially $125 billion European Union and International Monetary Fund (IMF) rescue of Ireland, a nation heading toward bankruptcy next year because the government cannot pay an ever-escalating bill to save its state-backed banks.
Ireland’s deficit this year is 32 percent of GDP, the highest in Europe since World War II. Its banks are running short of cash because they can’t borrow on open markets.
Analysts increasingly warn that Ireland’s bank-bailout bill could ultimately reach $125 billion — double the government’s current forecast — because of defaults looming down the road, particularly in residential mortgages.
The Irish political and economic crisis, and its uncertain solution, drove up borrowing costs Tuesday for Portugal, Spain, Greece and Italy, all of whom face their own mounting debt-financing struggles. The rising interest rates on eurozone bonds reflect fears that a third member of the 16-nation eurozone — after Greece and Ireland — might be backed into its own bailout corner soon.
The Irish Cabinet gathered at Mr. Cowen’s office to complete a four-year plan for unprecedented budget cuts — a condition of Ireland’s international bailout. The plan, which proposes to slash $20 billion from the country’s 2011-14 budget deficits through a combination of cuts and tax hikes, is to be published Wednesday. The 2011 budget will follow Dec. 7.
“We don’t have the luxury of time in relation to this,” Mr. Dempsey said. “We asked for assistance. We were given that assistance on the basis that we were going to produce this four-year plan, that we were going to produce a budget, and that budget would pass. If we can’t do that, then the assistance isn’t there.”
Two separate Fianna Fail meetings were scheduled for Tuesday — one led by party rebels, the second by the party’s full 70-strong bloc in Dail Eireann, Ireland’s parliament.
“There’s serious discontent within the parliamentary party. I believe it’s now up to those who’ve spoken out to take soundings amongst their colleagues to take action to remove that man [Mr. Cowen] immediately,” Fianna Fail lawmaker John McGuinness said.
But Cowen loyalists said Mr. McGuinness and other rebels wouldn’t be able to gather the 18 signatures required for a no-confidence vote to be scheduled.
TWT Video Picks
By Robert N. Tracci
Congress must use its appropriations power to secure the border
- DOJ investigates Nebraska parade float critical of Obama
- Agency scrubs Malia Obama photos at White House's request: report
- A 'new Cold War': China's top paper warns of 'slippery slope' towards conflict with U.S.
- Violent gang MS-13 taking advantage of immigration crisis, using border as recruiting hub
- Emeryville, Calif., police chief: Guns aren't for defense
- Islamic State leader Abu Bakr al-Baghdadi formerly a U.S. captive
- KUHNER: Will Russia-Ukraine be Europe's next war?
- Germany wins World Cup title on Mario Goetze goal in extra time
- Obama's 'blank check' rejected as border solution
- New York City creates ID card so 500K illegal immigrants can get services
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq
World Cup's sexiest WAGs