AlQa'dah 15, 1432, Oct 13, 2011, SPA -- Ireland issued a warning shot Thursday over the European Union executive's plans to bring forward the introduction of the European Stability Mechanism (ESM), the permanent eurozone bailout fund, according to dpa. On Wednesday, European Commission President Jose Manuel Barroso said the 500-billion-euro (686-billion-dollar) ESM should be operational by the middle of 2012, a year earlier than planned. But Irish Prime Minister Enda Kenny said the private sector involvement (PSI) rule in the ESM - forcing private creditors to chip in on a case-by-case basis in eurozone bailouts - "is an issue of concern not only to Ireland, but to other countries." Kenny was speaking at a press conference in Brussels with Barroso. Creditors were urged to take a 21-per-cent loss on their loans to Greece in July, and may be asked to give up even more in the coming weeks, as EU leaders scramble together a comprehensive eurozone crisis plan. The Irish premier said "the exclusiveness and uniqueness" of the Greek PSI arrangement "should be made perfectly clear," to avoid fueling investors' fears that they may stand to lose money from loans to other bailed out eurozone countries such as Ireland. In a speech Wednesday, Barroso said ESM plans should be fast-tracked "to further cement the expression of unity and responsibility" in eurozone crisis resolution mechanisms. Ireland is currently drawing loans from the European Financial Stability Facility (EFSF), the ESM's temporary predecessor. But unlike Greece, it is making a quick recovery and plans to exit bailout facilities in 2012. According to critics, warning investors that they will be asked to incur losses in any future bailout is counterproductive, as it encourages traders to divest money from weak eurozone economies, increasing their plight. Kenny was one of several leaders visiting Brussels on Thursday ahead of an October 23 summit expected to take key decisions on the eurozone crisis - including a bank recapitalization plan and fresh measures for Greece. -- SPA
