The Irish Minster for Finance is talking of releasing the letter the ECB sent to Ireland which threatened to remove all ELA assistance unless Ireland agreed to a bailout. So much for euro nations being sovereign when an unelected official has that power. Its quite clear that the banks run the show.

Finance Minister Michael Noonan has said a secret “threatening” letter from the European Central Bank to his predecessor Brian Lenihan, which forced Ireland into the troika bailout in 2010, should now be released.

The letter has to date remained top secret and both the Department of Finance and the ECB have repeatedly refused to make it public.

Now Mr Noonan has said he favours it being made available, putting him on a potential collision course with the ECB, which is adamant that it remain “strictly confidential”.

The controversial letter from the then ECB president Jean Claude Trichet to Mr Lenihan dated November 19, 2010, is said to have threatened the withdrawal of emergency liquidity assistance (ELA) to Ireland if the then government refused to accept the bailout, that included a ban on burning bondholders.

In the past two weeks, there has been growing pressure from within the Government, the opposition and leading economists to have his department release the contents of the letter.

Ireland should have pulled an Iceland and told the banks to cover their own debts but the Irish Finance Minister of the time gave in to the threats. Instead, no bondholders were allowed to be burned and the Irish taxpayer forced to prop up the euro least foreign owned banks have to take a hit or collapse under their losses.

Speaking exclusively to the Sunday Independent yesterday, Mr Noonan said that he had seen the “very direct” letter which left Mr Lenihan with “little or no option” but to admit defeat and lead Ireland into the €85bn troika programme.

It is now beyond doubt that Mr Lenihan was threatened directly by Mr Trichet, and that Ireland was bounced into the troika programme by unelected officials at the ECB.

In another example of how politicians clearly run the country for vested interests, the letter which confirms what a lot of people suspected was covered up for nearly 4 years by politicians.

Mr Noonan said he had no authority to order the release of the letter, given the decision of the Freedom of Information unit in his department to withhold it.

“The FoI unit is totally separate from the political side of the department, and it was decided that this letter was not releasable.”

But Mr Noonan, who returns to his office on Monday from his holidays, has said that the letter should be made available to whatever banking inquiry is established by the Government in the coming months.


Source: Irish Independent