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Trichet letter revealed: ECB threatened to stop emergency funding unless Ireland took bailout
The European Central Bank (ECB) explicitly threatened in late November 2010 to cut off emergency funding from the Irish banking system, unless Ireland immediately applied for a bailout and agreed a programme of austerity and bank recapitalisation. The letter from then ECB president, Jean-Claude Trichet, to former finance minister Brian Lenihan – marked “secret” – was sent on November 19th, 2010. A copy has been obtained by The Irish Times. Its publication is due to be considered at a meeting of the ECB governing council today. The letter states that the governing council of the ECB would only agree to provide ... (full story)