“Anyway, let’s assume that the total amount extra that these banks need is circa 30bn euros. That would take the total quantity of state investment in Ireland banks to a breathtaking 75bn euros (actually a tiny bit more than that).
That is an almost unbelievably large number. When I think about it, I have a small panic attack – because it represents 45% of Ireland’s GDP and 55% of its GNP.
It will therefore be fascinating to hear what the Irish premier and finance minister lay out as their vision for the future of Ireland’s banks. That will be presented at 4.45pm on Thursday, 15 minutes after the Central Bank of Ireland announces the precise, hideous amount of extra capital the banks will be forced to raise.
It will be another momentous day for Ireland and for the Eurozone. But whether it will be a day that sets both on the road to financial recovery, or nudges them nearer catastrophe, cannot yet be assessed.”