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Wednesday, 9 March 2011 - New PM vows to lift Ireland out of darkest hour |
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    Read more with google mobile : New PM vows to lift Ireland out of darkest hour |

    Edition: U.S. Article Comments (0) Full Focus Editor's choice A selection of our best photos from the past 24 hours.   Full Article  Follow Reuters New PM vows to lift Ireland out of "darkest hour" Tweet Share this Link this By Conor Humphries and Carmel Crimmins DUBLIN (Reuters) - Ireland's Enda Kenny was elected prime minister with a record majority on Wednesday and pledged to lift the euro zone struggler out of its "darkest hour" as talks on a bailout loom. The... Email Print Related Topics World » Aerospace & Defense » Ireland » Fine Gael leader Enda Kenny addresses supporters in Dublin, February 26, 2011. Credit: Reuters/Darren Staples By Conor Humphries and Carmel Crimmins DUBLIN | Wed Mar 9, 2011 10:49am EST DUBLIN (Reuters) - Ireland's Enda Kenny was elected prime minister with a record majority on Wednesday and pledged to lift the euro zone struggler out of its "darkest hour" as talks on a bailout loom. The former primary school teacher is under pressure to persuade Europe to cut the cost of a rescue package investors fear could bankrupt the former "Celtic Tiger" economy and viewed with resentment by stretched Irish taxpayers. "Yes we are in times without precedent but I believe that for Ireland this current crisis is the darkest hour before the dawn," Kenny told the packed chamber, with his wife and family looking on from the gallery. "It is the first day of a journey to a better future." Kenny's center-right Fine Gael and junior coalition partner the center-left Labour party scored historic election victories last month on a wave of anger over the 85 billion euros EU/IMF bailout and the reckless bank lending which sparked it. With a gaping budget shortfall, the new government has vowed to stick to the fiscal austerity targets laid down as part of the bailout, prompting derision among left-wing lawmakers. "The poisonous cocktail of austerity drawn up, concocted by the witchdoctors in Brussels and in Frankfurt because of the sickness of the European financial system is to continue to be force-fed to the Irish people by this proposed new government," Socialist Party member Joe Higgins told parliament. Despite the vocal opposition, the government's record mandate ensured Kenny was elected Taoiseach (prime minister) with 117 votes for and 27 against. NOT GOOD ENOUGH Irish voters hope the government's large majority will aid Kenny's efforts to renegotiate the bailout's terms before a regional deal on resolving Europe's sovereign debt crisis is hammered out at a summit on March 24-25. Euro zone leaders meet on Friday to set the parameters of that package and agree a "competitiveness pact" Germany and France want implemented as part of any deal on the crisis. Expectations are high that Europe will agree to a cut in the average 5.8 percent interest rate it is charging on over 40 billion euros worth of loans but there are concerns that will be like sticking bandaid on a gaping wound. A Reuters spreadsheet model of Ireland's debt trajectory has shown that a cut in the interest rate would only have a marginal impact on Dublin's debt mountain, which the IMF has said could hit 125 percent of Gross Domestic Product (GDP) by 2013, and suggests bolder steps would be needed. But the European Central Bank (ECB) has shot down proposals to impose losses on some senior bondholders in Irish banks and German Chancellor Angela Merkel is under pressure from domestic voters not to give in to euro zone stragglers with extended loan repayments or bond buybacks. The dearth of progress on a deal has kept Irish borrowing costs close to record highs and economists are skeptical that enough will be done this month to end doubts about Ireland and other debt-ridden economies such as Portugal, seen as next in line for a bailout. 1 2 Next World Aerospace & Defense Ireland Tweet this Share this Link this Digg this Email Reprints   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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