* Also opposes two-speed euro currency zone
* Says restructuring will 'bleed' Irish bank investors
* Raising Irish VAT could be better than corporate tax hike
By Marcel Michelson
AMSTERDAM, Nov 23 Throwing Ireland out of the
euro zone or splitting the single currency area into a weak and
a strong bloc should be ruled out as potential responses to
Dublin's debt crisis, the Dutch Finance Minister said on
"Throwing Ireland out of the euro is not a good idea, it
would provoke a chain of unwanted effects," Jan Kees de Jager
told the RTL 7 television broadcaster.
"If you ... (allowed) southern countries to devalue, then
this would hurt our exports and our economy."
Investors in Irish banks will have to take haircuts as part
of a restructuring of Ireland's banking system, just like the
country itself will have to pay dearly for outside help, he
The amount of public funds needed to clean up Irish bank was
not yet known, but there would be no free ride for private
"Shareholders and holders of subordinated bonds in Irish
banks will have to bleed in a restructuring," he said.
Dublin has already said it will intensify reforms of its
banks and surplus businesses will have to be discarded.
[ID:nLDE6AL0B8]. Analysts said there was limited scope to sell
De Jager said Ireland would need to cut spending but had to
be careful about raising taxes. "It could be better to raise the
VAT rate than the corporate tax rate," he said.
(Reporting by Marcel Michelson; Editing by John Stonestreet)