Our sources say the Irish Government worries it has overplayed its hand on Brexit. And because of the political situation in Ireland, Leo Varadkar does not want to take the blame for that.
Instead, if Ireland finds itself in a tricky spot, it will say to the other EU26 “you broke it, so you fix it”.
That means that the new UK Prime Minister might make a bee line for Dublin, but it could be a wasted trip – not because the Irish are unwilling to change, but because they need the cover of Brussels forcing them to do it.
For detailed political analysis, please email GUIDE's Chief Executive on greig@theguideconsultancy.com
Within hours of the ECB's and the SRB's decisions on Thursday, the Bank reached out to the ECB and the SRB requesting the full text of their decisions so that their basis can be analyzed. There has been no substantive response by the ECB. The SRB merely stated that it needs to determine which parts of its decision can be disclosed to the bank.
The SRB was asked by the Bank to clarify on what basis it has stated on Thursday evening that the bank will be liquidated under national law. AS PNB Banka’s new shareholders and Management Board understand that the SRB has no decision-making power as regards a liquidation under national law.
AS PNB Banka’s new shareholders and Management Board also note the FCMC's statement on Thursday that its measures are "unexpected". The FCMC will have to explain the basis on which it made a determination of the unavailability of deposits.
AS PNB Banka’s new shareholders and Management Board will vigorously contest any petition for the opening of insolvency proceedings in front of the Latvian courts and in this context will demand that the Latvian courts obtain guidance from the European Court of Justice as to compliance with applicable European law.
AS PNB Banka’s new shareholders and Management Board reserve all rights and remedies on a national and European level as well as their rights pursuant to investment treaties. This includes the investment treaty between the United States of America and Latvia. AS PNB Banka’s new shareholders have therefore written to the US Embassy in Riga.
AS PNB Banka’s new shareholders and Management Board also recall the responsibility of Latvia and the European authorities as regards the credibility and reliability of banking regulation in Latvia. Outside observers (such as the US government) but also the competent Latvian authorities themselves have acknowledged the serious issues in this regard. The competent authorities and the courts should be allowed to discharge fully their responsibility in this regard so as to restore confidence in the system.
The ECB’s assessment of the Bank's financial position needs to be analyzed against the background of the auditor’s and the FCMC’s prior assessments. AS PNB Banka’s new shareholders and Management Board are concerned that the bank is treated differently than all other comparable banks in Latvia and elsewhere in Europe.
AS PNB Banka’s new shareholders and Management Board are convinced that the Bank's continued operations can be ensured and that this will be for the benefit of more than 100,000 Bank's depositors, 500 employees and their families as well as Latvia and its tax revenues.
