Ireland - Meltdown approaching fast

tirano

The deficit of the euro-area nations will increase to 4% of gross domestic product this year from 1.7% of GDP in 2008, the European Commission forecast. That would put the budget shortfall above the EU’s 3% ceiling for only the second time since the euro’s introduction a decade ago.

The Irish deficit is 11%, they are on the verge of collapse.

http://www.irishtimes.com/newspaper/breaking/2009/0209/breaking52.htm

bo_drinker

So what will happen in real terms ??

MrFonzerelli

So either the single currency experiment is coming to a dramatic end, or better performing EU countries will need to bail out those worse off...

StevieJ

I don't see the point in the Euro, it just reduces flexibility.

Bf109

tirano wrote: »

The Irish deficit is 11%, they are on the verge of collapse.

http://www.irishtimes.com/newspaper/breaking/2009/0209/breaking52.htm

Doing quite well compared to the UK. Our deficit must be about 400% by now.

Conflict

StevieJ wrote: »

I don't see the point in the Euro, it just reduces flexibility.

The Euro would be a great idea IF all the countries put all fiscal related powers/responsibilities under the same banner. But with all the countries operating there own tax and spending policies its doomed to failure as it allows for no flexability.

Count_Dante

Conflict wrote: »

The Euro would be a great idea IF all the countries put all fiscal related powers/responsibilities under the same banner. But with all the countries operating there own tax and spending policies its doomed to failure as it allows for no flexability.

US states have substantial control over their own budgets, and somehow the US single currency - the dollar - has been a success. A currency is merely a currency. It does not confer magic abilities to destroy or enrich economies. The Irish crisis has nothing to do with the Euro, and more to do with have-cake-and-eat-it policies.

pararct

As a member of the organisation although not the single currency would we be part of any bail out?

Rochdale_Pioneers

Bf109 wrote: »

Doing quite well compared to the UK. Our deficit must be about 400% by now.

We're already bankrupt. Didn't you notice when the receivers auctioned off your pants?

Bf109

Rochdale_Pioneers wrote: »

We're already bankrupt. Didn't you notice when the receivers auctioned off your pants?

No, TBH. Like Paris Hilton, I dont wear any!

StevieJ

Count_Dante wrote: »

US states have substantial control over their own budgets, and somehow the US single currency - the dollar - has been a success. A currency is merely a currency. It does not confer magic abilities to destroy or enrich economies. The Irish crisis has nothing to do with the Euro, and more to do with have-cake-and-eat-it policies.

I am sure they are enjoying the fact that cost of their exports to their nearest neighbour have rocketed It is part of the whole balancing process, you obviously don't remember the UK exit from the ERM.