Loans to Ireland from UK banks now supported by the taxpayer?
This has absolutely nothing to do with it, although politicians would like us to believe that is the reason - 'It's in our interests to 'loan' Ireland this money as our banks are so exposed there'. Such a bare faced lie could only come from a politician.
Yes, we are exposed (via our nationalised banks) to £140bn of debt, but then other EU countries are also exposed. What is an extra £80bn of EU loans really going to achieve? Ireland will still be spending more than she is taking in in tax revenues, this will simply keep the wolf from the door for another year.
I fully believe that these 'loans' are a stop gap measure until the EU can step in and take control of Ireland's taxing and spending. Whether this is done on a country by country basis or part of a general treaty (although ti will be done as an amendment to an existing treaty to save any democratic principles getting involved) we will have to wait and see.
That our government is tacitly supporting such a plan by acceding to the demands of the EU over this tells us far more about their attitude to the EU than their desire to 'save Ireland'.
If our politicians really wanted to get Ireland out of this mess they would be pushing for Eire to come out of the Euro zone and back into her own currency, that is the only sensible way forward. I have nothing against Ireland and would love to see that country come out of this well but I fear that while she is locked into the Euro and the EU that things can only get worse.