Ireland Central Bank (CBI) makes its own Euros
It's a sensation and the third time a Central Bank (NCB) in the Euro region (EMU) sidesteps the rules and issues it's own money in form of Euros. In case of emergency the Euro-system allows in Article 14.4 of the Statute of the ESCB and the ECB each central bank to make own Euros instead of the ECB, called the Emergency Liquidity Assistance (ELA). The ECB has a veto right if the Governing Council finds, by a majority of two thirds of the votes cast, that ELA interferes with the objectives and tasks of the ESCB.
This veto threat forced Ireland to accept the cruel help conditions from the IMF and ECB in the end of 2010.
The costs and liabilities arising from ELA support are not pooled or shared by the other members of the Eurosystem.
One of the big problems with the Euro is that the countries loose the power to issue their own money when it is needed, and the need comes up in all nations because the lack of money for the interest payments. If they keep to the rules they have to ask for a loan from the ECB, IMF or private banks. But they lost the possibility to make their own Euros because the ECB wants the total controll how much Euros are circulating. The consequence is that a nation really can get bankrupt because they lost the possibility to make their own money.
So it is historical that the Central Bank of Ireland doesn't give a damn about the crazy rules (they acceptet inadequate collateral) and acts as it should act right from the beginning: issuing it's own money. Congratulations to the peopble in Ireland beeing responsible for that. I hope other countries will follow. The problem is of course that ELA speeds up the inflation of the Euro.