Labour Welcomes EU Inquiry On Anglo

The Labour party has welcomed today's announcement from the European Commission that the Government's plans to recapitalize the Anglo Irish Bank will be investigated.

Joan Burton, Labour Spokesperson on Finance, said the decision by the European Commission to open an in-depth investigation into the total aid received so far by now state owned bank and its accompanying restructuring plan may "lead to the truth about what actually went on at the Bank".

"Hopefully, this investigation will look at the toxic triangle of Fianna Fáil in government, the developers who funded them, and the developers’ principal banker, Anglo Irish Bank.

"Clearly, from the EU Commission’s statement, the government has been aware for some time of the greatly deteriorated position of Anglo Irish Bank and its likely burden on the Irish taxpayer."

Today, leading economist Peter Bacon described the bank as "a Celtic Chernobyl" after the Government announced on Tuesday it would be pumping some €22 billion to keep it afloat.

During his address to the Daíl on the role of the new National Asset Recovery Agency and further recapitalization of Irish banks, Brian Lenihan said his decision to provide so much taxpayers cash to the bank was "the least worst option."

Today Anglo reported the largest corporate loss in Irish history, €12.7billion.

Joan Burton said the amount of money earmarked for banks meant that the first item on the agenda of the next ten budgets in Ireland will be an annual bailout payment of about €2.1billion, as taxpayers pay the cost of "crony capitalism" at Anglo Irish Bank and Irish Nationwide.

"To cover this alone, the standard rate of tax would have to rise from 20% to 25%," Ms Burton said.

She added: "This is to be the lasting legacy of Messrs. Fitzpatrick and Fingleton and their Fianna Fáil benefactors."

(DW/GK)