IREF - Institute for Research in Economic and Fiscal issues
Fiscal competition and economic freedom
According to various Internet sources, Irish banks would have borrowed €51bn from the Irish central bank by the end of December, under an obscure program listed in the balance sheet as "other assets". That is, the Central bank has electronically printed up new currency units for Irish commercial banks, without issuing debt behind these actions. The actions of the Irish central bank are not ignored by Germany, but fall out of the area of official monetary policy and appear to involve money creation outside the normal control of the European Central Bank.
In fact, this is a pure money printing, involving all the negative consequences such as inflation and spoliation of people’s savings and those who will pay are the strongest euro economies.
It looks like Ireland decided to borrow money from its European partners, without asking for their permission.