Ireland Government Crumbles Putting Banker Bailout In Doubt

01-23-2011 • ZeroHedge.com

It has been a while since we had one of those "before Asia opens" kind of Sundays. Today just may be one. BBC has just reported that the Irish Green party has pulled out of the ruling coalition with Fianna Fail which is "expected to bring forward the general election from 11 March." In other words suddenly the entire Irish "rescue", taken for granted for over a month, will have to be reexamined, once the new ruling party, which will certainly be from the current opposition reevaluates the terms. Elections are now expected to come some time in mid-February. Look for peripheral bond spreads to go whooosh tomorrow. From BBC: The party's announcement, after a meeting in Dublin, follows a decision on Saturday by PM Brian Cowen to quit as leader of his Fianna Fail party. Mr Cowen had said he would stay on as PM until the election, a move opponents had described as "farcical". The Greens' decision removes the ruling coalition's two-seat majority.