104 Recapitalisation of banks, as well as the whole banking resolution process, was fully public during the 2008 financial crisis. The Single Resolution Mechanism shifted from this approach and created a public-private system, where private individuals and entities can be called in to fund recapitalisation (bail-in). This article argues that recapitalisation (and banking resolution as a whole) should be fully public so it can be rapid, negotiation-free, and in the best interest of the State. The 2008 Irish recapitalisation illustrates well the rewards of having public recapitalisation, while it also tells where improvements are needed to protect recapitalisation process and taxpayers. Currently, the Single Resolution Mechanism has different recapitalisation methods, which creates some complexity and overlaps.
Ireland's answer to transitioning, greening and securing energy production is essentially to develop offshore wind, thereby leveraging its large maritime territory. Ireland supplies and runs an all-island grid, and has export potential to other EU countries by means of interconnectors. This article argues that energy transition is an opportunity for Ireland to rank as a key energy supplier and technological leader for offshore wind. Reaching these positions requires a range of political and industrial measures to achieve strategic management of Irish waters. The Irish government, together with the national electricity company, the Electricity Supply Board, is now rolling out a roadmap of programmes and investments to dramatically increase offshore wind share in the national energy mix by 2030. A very clear governmental transition strategy, the recent launch of several infrastructure construction works and significant financial firepower, combined with strong EU support, give confidence that Ireland can deliver on its objectives.
ABSTRACT: Ireland's answer to transitioning, greening and securing energy production is essentially to develop offshore wind, thereby leveraging its large maritime territory. Ireland supplies and runs an all-island grid, and has export potential to other EU countries by means of interconnectors. This article argues that energy transition is an opportunity for Ireland to rank as a key energy supplier and technological leader for offshore wind. Reaching these positions requires a range of political and industrial measures to achieve strategic management of Irish waters. The Irish government, together with the national electricity company, the Electricity Supply Board, is now rolling out a roadmap of programmes and investments to dramatically increase offshore wind share in the national energy mix by 2030. A very clear governmental transition strategy, the recent launch of several infrastructure construction works and significant financial firepower, combined with strong EU support, give confidence that Ireland can deliver on its objectives.
This doctoral thesis examines the lessons to be learned from the resolution of Anglo Irish Bank during the 2008 financial crisis, in order to evaluate the six resolution tools that are defined in the Bank Recovery and Resolution Directive (Directive 2014/59/EU) and that are integrated within the Single Resolution Mechanism. The analysis focuses on evaluating these resolution tools in a context of financial crisis, i.e. a crisis similar to the 2008 financial crisis. Five of these six resolution measures were used during the Irish financial crisis, principally for Anglo Irish Bank. Anglo Irish Bank's resolution hence enables an understanding of the functioning, benefits, and limits of recapitalisation, work-out agencies, nationalisation, merger, and liquidation. The sixth resolution tool is bail-in, which denotes a private recapitalisation and which was created in the BRRD in reaction to the 2008 public recapitalisations. By reference to the Irish response, to the recent SRM resolutions, and to financial analyses, the dissertation seeks to provide a practical explanation of the effects and the feasibility of these resolution tools. The resolution of Anglo Irish Bank shows that resolution tools can work alone, in combination, and in succession. This gives flexibility and back-up solutions to help a bank at different stages of a crisis. The Irish example evinced that recapitalisation is an expedient emergency tool to contain a crisis, even though it is legally and politically controversial. The Irish response highlights that a work-out agency is capable of solving non-performing loans, so long as there is a sound legal framework to protect property rights. Furthermore, corporate measures (nationalisation, merger & acquisition, and liquidation) can successfully assist a bank if piloted by a public authority. EU banking resolution includes a large suite of resolution tools, which is now encompassed within the Single Resolution Mechanism. EU banking resolution is marked by the tension between recapitalisation and bail-in. While recapitalisation is necessary to address urgent distress, bail-in cannot be used as a standalone measure and it has limited relevance when the State is a major shareholder. Through this dissertation, the main features of a good banking resolution are identified. Banking resolution must have a permanent legal framework. Financial difficulties are part of entrepreneurial business and the continuity of banking services is core to capitalist economies. Having a variety of resolution tools within a permanent resolution regime allows public authorities to choose the most commercially and politically suitable option, and to adapt their strategies in response. Some resolution tools can be expensive, and their costs need to be anticipated. Resolution should therefore be administered by a public authority, especially since banking is critical to capitalist economies.
