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Well, she follows in the not-so-illustrious footsteps of Dominque Strauss Kahn but these International Central Planners do like their coronations…

French finance minister Christine Lagarde has been chosen as the first female leader of the International Monetary Fund. Her selection was assured early yesterday when she was endorsed by the U.S. shortly before being elected by the IMF’s 24-member board. She had also won support from Europe, China and Russia. Miss Lagarde, 55, takes over as IMF managing director from Dominique Strauss-Kahn, who is under house arrest in the U.S. on sex charges after an alleged assault against a hotel maid.

What of Lagarde? Well, were I Irish, I would be a little concerned;

Here she is speaking back in March…

Lagarde conceded Ireland’s tax rates were a “tricky” subject. While EU member states are unified by a shared currency, they jealously guard their sovereignty on tax issues. Ireland has resisted raising its 12.5 percent corporate tax rate. Dublin this week signaled it would consider ratifying EU-wide rules that would pool tax collection across countries in a Common Consolidated Corporate Tax Base (CCTB), a change it had previously resisted. Lagarde said the issue was not just Ireland’s corporate tax rate but also its tax base. “I hope we will see good common interest in really arriving at a more level situation,” Lagarde said.

With the IMF holding the purse-strings to Ireland’s bailout, one wonders what the future now holds?

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7 thoughts on “PARISIAN PATHWAYS…

  1. It’s bankster business as usual.


    We know that corporation tax is paid mainly by employees in lower wages and destroyed jobs, so she thinks Irish workers must have the violence of law brought on them to lower their standards of living.

    She stands for no change on bailing out the banks which loaned to the PIIGS except for faster moves on “reforms” to suck more and more from their economies.

    It’s no surprise since she’s an insider: the first female chairman of the international law firm Baker & McKenzie, intern at the United States Capitol (how does a Frenchie get that?) and now the ex-France Economic Minister.

    Business as usual.

  2. I love the fact that she traveled to Brazil and China and other places to campaign for the top job – all of these lobbying expenses paid by the IMF I’m sure.

  3. No surprise that her first official statement was to threaten the Greeks if they do not tow the IMF / ECB / EU austerity line. And the austerity demanded is savage. Here are a few examples:

    Taxes will increase by 2.32bn euros this year, with additional taxes of 3.38bn euros in 2012, 152m euros in 2013 and 699m euros in 2014.
    A solidarity levy of between 1% and 5% of income will be levied on households to raise 1.38bn euros.
    The tax-free threshold for income tax will be lowered from 12,000 to 8,000 euros.

    The public sector wage bill will be cut by 770m euros in 2011, 600m euros in 2012, 448m euros in 2013, 300m euros in 2014 and 71m euros in 2015.
    Nominal public sector wages will be cut by 15%.
    Wages of employees of state-owned enterprises will be cut by 30% and there will be a cap on wages and bonuses.
    All temporary contracts for public sector workers will be terminated.
    Only one in 10 civil servants retiring this year will be replaced and only one in 5 in coming years.

    Full details here

  4. The Greeks need to be told to get their house in order.

    Stand up straight, or get out of the Euro / EU.

  5. Their parliament has just voted for the austerity package. So the default will be delayed another year at the most, probably a lot less, and the melt-down will be even greater.

    Default now would be a better option.

    But the markets will have their say in the end.

  6. >>So the default will be delayed another year at the most, probably a lot less, and the melt-down will be even greater.<<

    My bet is that there will be a rescheduling or cancellation G's debt to make the place more economically viable. The main lenders will suffer, but not as much as in the other scenarios.

  7. Noel Cunningham –

    Even a rescheduling is a default and it would cause interest on the debt to rise significantly. Any savings on the rescheduling would be more than wiped out by it.

    In the last few days in Brussels and Athens a short-term loan has been cobbled together so Greece can roll over its short-term debt. All they’ve done is kick the can down the road by increasing the debt yet again.

    The lenders will ultimately suffer because there’s no way the debt can possibly be repaid by Greece or other countries.

    It’s going to end extremely badly.

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