View source for Economic Adjustment Programme for Ireland

{{Short description|Economic policy in Ireland}}
{{Use dmy dates|date=April 2022}}
[[File:Ireland bond prices.webp|thumb|300px|Ireland bond prices, [[Inverted yield curve]] in 2011<ref>[https://www.researchgate.net/figure/a-Irish-yield-curve-dynamics-around-2011-loan-amendments-b-Portuguese-yield-curve_fig2_342609297 Figure 2] within {{cite journal|doi=10.1007/s11558-020-09388-9 |title=Official sector lending during the euro area crisis |year=2020 |last1=Corsetti |first1=Giancarlo |last2=Erce |first2=Aitor |last3=Uy |first3=Timothy |journal=The Review of International Organizations |volume=15 |issue=3 |pages=667–705 |s2cid=225624817 }}</ref>
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The '''Economic Adjustment Programme for Ireland''', usually referred to as the '''Bailout programme''', is a [[Memorandum of understanding]] on [[bailout|financial assistance]] to the [[Republic of Ireland]] in order to cope with the [[Post-2008 Irish banking crisis|Post-2008 Irish financial crisis]].

It was signed on 16 December 2010 by the [[Government of Ireland|Irish Government]] under then-[[Taoiseach]] [[Brian Cowen]] on one hand, and on the other hand by the [[European Commission]] on behalf of the [[Eurogroup]], the [[European Central Bank]] (ECB) and the [[International Monetary Fund]] (IMF).

On 15 December 2013, Ireland exited the programme.
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==Background==
{{main|Post-2008 Irish banking crisis{{!}}Post-2008 Irish financial crisis}}
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==Memorandum of Understanding==

On 28 November 2010, [[European Commission]], [[European Central Bank]] (ECB) and the [[International Monetary Fund]] (IMF), colloquially called the European [[Troika (European Union)|Troika]], agreed with the Irish government in a three-year financial aid programme on the condition of far-reaching [[austerity]] measures to be imposed on the Irish society in order to cut [[government expenditure]].<ref>{{cite news|url=https://www.theguardian.com/business/ireland-business-blog-with-lisa-ocarroll/2010/nov/28/ireland-bailout-full-government-statement|title=Government Statement on the announcement of joint EU - IMF Programme for Ireland|work=[[The Guardian]]|first=Lisa|last=O'Carroll|date=2010-11-28|accessdate=2015-01-05|archive-date=2014-07-15|archive-url=https://web.archive.org/web/20140715085928/http://www.theguardian.com/business/ireland-business-blog-with-lisa-ocarroll/2010/nov/28/ireland-bailout-full-government-statement|url-status=live}}</ref>

To avoid the legislative [[ratification]] procedures required for [[treaty|treaties]] under [[international law]], the programme was set up as an intergovernmental agreement consisting of:
* the ''Memorandum of Economic and Financial Policies'' (MEFP),
* the ''Memorandum of Understanding on Specific Economic Policy Conditionality'' (MoU),
* and the ''Technical Memorandum of Understanding'' (TMU), the actual Loan Facility Agreement.
The agreements were signed on 16 December 2010{{when|date=January 2015}} by the Irish government and the European Commission.

===Financial aid===
The total amount of €85 billion would consist of €67.5 billion external support, consisting of:
* €22.5 billion from the [[European Financial Stabilisation Mechanism]] (EFSM),
* €22.5 billion from the [[European Financial Stability Facility]] (EFSF) and bilateral loans from the Euro non-member states [[Denmark]], [[Sweden]] and the [[United Kingdom]], and
* €22.5 billion from the [[International Monetary Fund]] (IMF)
as well as a €17.5 billion contribution from the Irish Treasury and the National Pension Reserve Fund.<ref name="National Pensions Reserve Fund Quarterly Performance Statement">{{cite web|url=http://www.nprf.ie/Performance/performance3Qtr10.htm|title=National Pensions Reserve Fund Quarterly Performance Statement|publisher=National Pensions Reserve Fund|date=30 September 2010|accessdate=13 March 2013|url-status=dead|archiveurl=https://web.archive.org/web/20141219211036/http://www.nprf.ie/Performance/performance3Qtr10.htm|archivedate=19 December 2014}}</ref>
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==See also==
* [[Post-2008 Irish economic downturn]]
* [[Post-2008 Irish banking crisis]]
* [[First Economic Adjustment Programme for Greece|First]] & [[Second Economic Adjustment Programme for Greece]]
* [[Economic Adjustment Programme for Portugal]]
* [[Economic Adjustment Programme for Cyprus]]

==References==
{{reflist}}

==Literature==
* {{cite book|ref=ocp76|url=http://ec.europa.eu/economy_finance/publications/occasional_paper/2011/pdf/ocp76_en.pdf|title=The Economic Adjustment Programme for Ireland|author=European Commission|authorlink=European Commission|series=Occasional Papers|issue=76|date=February 2011|place=Brussels|isbn=978-92-79-19326-2|doi=10.2765/18170|doi-broken-date=19 September 2024 }}

==External links==
* [http://ec.europa.eu/economy_finance/assistance_eu_ms/ireland/index_en.htm Financial assistance to Ireland] on the website of the European Commission

[[Category:Eurozone crisis]]
[[Category:2010s in economic history]]
[[Category:2010s in Irish politics]]
[[Category:Economic adjustment programmes of the European Union]]
[[Category:Brian Cowen]]
[[Category:Post-2008 Irish economic downturn]]