A bailout based on lies
27.6.2013
Question for written answer E-007574-13
to the Commission
Rule 117
Auke Zijlstra (NI)
On 24 June 2013, the Irish Independent broadcast a taped conversation between senior executives at Anglo Irish Bank who said that — although the bank was seeking EUR 7 billion in financial aid from the Central Bank of Ireland — they knew full well that they needed far more money, given that bankruptcy was imminent[1]. They also laughed at the idea of exploiting the bank guarantee issued by the Irish Government by using it to attract deposits from the United Kingdom and Germany, and mocked the latter by singing the opening bars of the former German national anthem, ‘Deutschland, Deutschland über alles’[2].
Therefore, Irish bailout loans from the European Financial Stability Facility (EFSF) are governed by an agreement based on lies. The Irish banking sector lied to public authorities in order to get its bill paid by eurozone creditor countries, including the Netherlands.
According to the principles of European contract law prepared by the Commission on European contract law, ‘a party who has concluded a contract relying on incorrect information given to it by the other party may recover damages…so as to put the avoiding party as nearly as possible into the same position as if it had not concluded the contract’ (Articles 4(106) and 4(117))[3]. The Irish authorities should be considered responsible for the wrongdoings and misinformation given by the Irish banking sector.
As a consequence, the Financial Assistance Facility Agreement between the EFSF, Ireland and the Central Bank of Ireland is null and void, and creditor countries should be given back their money.
In the light of the above:
- 1.Does the Commission agree with my statements? If not, could the Commission indicate its stance on the matter?
- 2.How will the Commission ensure that the principles of European contract law will be properly upheld? Will Member States get their money back in full?
- 3.Does the Commission agree that the senior executives at Anglo Irish Bank whose conversation was leaked should be properly prosecuted?
- [1] http://www.ft.com/intl/cms/s/0/f373d646-dcc9-11e2-9700-00144feab7de.html#axzz2XJjxS1nq.
- [2] http://www.independent.ie/irish-news/top-bankers-joked-about-bailout-29371056.html http://www.ft.com/intl/cms/s/0/feff200e-dd75-11e2-a756-00144feab7de.html#axzz2XJjxS1nq.
- [3] http://frontpage.cbs.dk/law/commission_on_european_contract_law/PECL%20engelsk/engelsk_partI_og_II.htm
OJ C 55 E, 26/02/2014