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Ireland's deficit highest in eurozone in 2009

  • 22-04-2010 04:17PM
    #1
    Registered Users, Registered Users 2 Posts: 4,235 ✭✭✭


    http://www.rte.ie/news/2010/0422/economy.html

    We are soaring ahead of the rest of Europe in terms of our deficit, there was a thread here last week asking if this was a bigger issue than NAMA, I think unquestionably it is, this is very worrying for our economy.


    Ireland officially recorded the biggest government deficit in the EU last year.
    Revised figures, published today by the EU's statistical agency, Eurostat, show Ireland's deficit for 2009 at 14.3% of Gross Domestic Product - higher than Greece at 13.6% and Britain's 11.5%.
    Public debt stood at 64% of GDP.
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    Until now, the Government deficit has been shown at 11.8% of GDP, but Eurostat and the Government have agreed that the €4bn injected into Anglo Irish Bank can no longer be regarded as a financial investment, but must be recorded as capital spending.
    The €4bn spent on Anglo was equivalent to 2.5% of GDP.
    Today's change is a technical revision. It does not involve any new borrowing or spending.
    Overall the eurozone deficit level rose to 6.8%, which is more than double the level permitted under the Maastricht guidelines governing the single currency.
    The cost to the State of borrowing money has risen on international markets to 4.73%.
    Responding to the figures, Minister for Finance Brian Lenihan said Ireland's plan is on track to bring the budget deficit in line with EU rules by 2014, despite a sharp upward revision of its 2009 budget deficit.
    'There is no additional borrowing associated with this technical reclassification,' he said in a statement. 'This is a once-off impact.'
    Fine Gael Finance Spokesperson Richard Bruton said the revised figures meant Ireland now had the highest borrowing of any state in the EU.
    He described Mr Lenihan's comments as 'nonsense' and said the measurement showed the Government would have to raise taxes or cut expenditure in future budgets.
    National debt to rise
    Meanwhile, the national debt is expected to rise to €94bn by the end of this year and to €112bn by the end of 2011, from just over €50bn at the end of 2008, the Oireachtas Public Accounts Committee has been told today.
    Chief Executive of the National Treasury Management Agency John Corrigan said the cost of servicing the national debt this year will be about €5bn.
    He also confirmed that the State can borrow money on the international markets at a much lower rate than countries like Greece.
    He said yesterday Ireland only had to pay 4.6% for funds, compared to the 8% that Greece is paying.
    Mr Corrigan also said about 14% of all taxes collected this year will go to pay for the national debt.


Comments

  • Closed Accounts Posts: 9,364 ✭✭✭ei.sdraob


    at least were good at something


  • Registered Users, Registered Users 2 Posts: 226 ✭✭CRenegade


    Its just another Newspaper story telling us that we are in a bad situation, it may be true but what can we do about it. Everyone in the Country would like to be in a better state but every day there seems to be more bad news!

    Hard for people to be thinking positive when every day the papers have stories of doom and gloom.


  • Registered Users, Registered Users 2 Posts: 4,235 ✭✭✭The_Honeybadger


    CRenegade wrote: »
    Its just another Newspaper story telling us that we are in a bad situation, it may be true but what can we do about it. Everyone in the Country would like to be in a better state but every day there seems to be more bad news!

    Hard for people to be thinking positive when every day the papers have stories of doom and gloom.
    It probably doesn't say anything we didn't know, except that the bank recapitalisation money will be considered part of our deficit. We're supposed to be back to 3% of GDP in a few years, that doesn't look likely now, not that it ever did.


  • Closed Accounts Posts: 39,019 ✭✭✭✭Permabear


    This post has been deleted.


  • Registered Users, Registered Users 2 Posts: 2,462 ✭✭✭Slideshowbob


    So for every €100 earned in Ireland last year - €14 of that will end up servicing national debt?!?!

    Is that correct?

    Or is it averaged out over a couple of years?!?

    Or am I totally mis-reading it?!


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  • Registered Users, Registered Users 2 Posts: 4,693 ✭✭✭Laminations


    So for every €100 earned in Ireland last year - €14 of that will end up servicing national debt?!?!

    Is that correct?

    Or is it averaged out over a couple of years?!?

    Or am I totally mis-reading it?!


    I read it like this

    FF have tied a noose around my head your head and the heads of future generations and they will watch us dangle from the trees. International factors me hole


  • Closed Accounts Posts: 1,251 ✭✭✭Sandvich


    Personal/private sector debt is much worse though. The EU probably won't let the Irish government collapse but as for individuals I doubt they give a toss.


  • Closed Accounts Posts: 2,034 ✭✭✭deadhead13


    So for every €100 earned in Ireland last year - €14 of that will end up servicing national debt?!?!

    14% of whatever tax is paid on that 100 euro, or 14 euro out of every 100 euro received in tax revenue by the Government.


  • Registered Users, Registered Users 2 Posts: 4,121 ✭✭✭RichardAnd


    I read it like this

    FF have tied a noose around my head your head and the heads of future generations and they will watch us dangle from the trees. International factors me hole


    FF merely played a part. We did this to ourselves with out 110% mortgages, 5 holidays a year etc etc. If people stopped blaming FF and considered their own part in this mess, we might not have such a steep hill to climb.


  • Registered Users, Registered Users 2 Posts: 2,818 ✭✭✭Tea drinker


    I have a five figure sum in an Irish bank, probably be cheaper for me long term to have that bank crash with no guaruntee.

    Just sayin....


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  • Registered Users, Registered Users 2 Posts: 2,818 ✭✭✭Tea drinker


    RichardAnd wrote: »
    FF merely played a part. We did this to ourselves with out 110% mortgages, 5 holidays a year etc etc. If people stopped blaming FF and considered their own part in this mess, we might not have such a steep hill to climb.
    Totally agree, it becomes difficult to give merit to or identify real problems when everyone is just bleeting about their own (self made) situation.


  • Registered Users, Registered Users 2 Posts: 4,693 ✭✭✭Laminations


    RichardAnd wrote: »
    FF merely played a part. We did this to ourselves with out 110% mortgages, 5 holidays a year etc etc. If people stopped blaming FF and considered their own part in this mess, we might not have such a steep hill to climb.


    Just like the CEO or board of a company is only partly responsible if they run the business into the ground. The workers in the company are of course responsible for taking advantage of the lax and irresponsible policies put in place by management. Now wheres the sarcasm smiley? The government were charged with managing the country. Individual mistakes and overindulgences are the fault of individuals yes, but when individual behaviour turns into mass behavioural trends leading to a bubble, its the government and institutions like the regulator and CB that were in control of the brakes and failed to act.


  • Registered Users, Registered Users 2 Posts: 4,693 ✭✭✭Laminations


    I have a five figure sum in an Irish bank, probably be cheaper for me long term to have that bank crash with no guaruntee.

    Just sayin....

    You do realise there were more options than 'guarantee or not guarantee'?

    The deposits could have been guaranteed.
    All banks bar Anglo could have been guaranteed.
    A clear picture of the banks balance sheets could have been sought before a guarantee.
    Guarantees could have been made contingent on the banks providing accurate information.


  • Closed Accounts Posts: 3,619 ✭✭✭fontanalis


    CRenegade wrote: »
    Its just another Newspaper story telling us that we are in a bad situation, it may be true but what can we do about it. Everyone in the Country would like to be in a better state but every day there seems to be more bad news!

    Hard for people to be thinking positive when every day the papers have stories of doom and gloom.

    Positive thinking doesn't pay the bills no matter what Oprah, The Secret or Marc Coleman tells you.


  • Registered Users, Registered Users 2 Posts: 7,638 ✭✭✭PeakOutput


    Just like the CEO or board of a company is only partly responsible if they run the business into the ground.

    its not even close to the same situation. workers dont vote for their ceos share holders do

    so the comparison is you reap massive profits for 20 years and keep voting in the same ceo over and over despite advisors telling you it cant last and his policies are risky and eventually the bubble bursts and the shareholders then blame anyone and everyone accept themselves because they have lost everything


  • Registered Users, Registered Users 2 Posts: 4,121 ✭✭✭RichardAnd


    I'll expand on my above post with a quote...


    cynics and knockers, people who always see the glass as half empty. I can’t understand people who are always bitching, saying ‘It’s the Government’s fault, it’s the doctor’s fault, it’s the cat’s fault.’ It’s everybody’s fault except their own.


    There is an irony in this. These are the words of none other than Bertie Ahern himself. I consider this man to be a dishonest, honourless piece of filth but on this, he is absolutely correct.


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