Ireland on the brink as budget crunch looms

RobitTV

After promising a 15 billion euro ($20.7 billion) austerity package of spending cuts and tax hikes, Ireland’s government may be facing its last chance to avoid a bailout by persuading markets that the country can repay its debts.

Yields on government bonds have soared in recent days as investors increasingly fear that the only long-term option for Ireland will be a bailout from Europe. But sympathy for Brian Cowen’s Fianna Fail–led coalition is almost nonexistent among the Irish, who see the government as the biggest villain in the collapse of the Irish economy.

“People are really angry. People on social welfare, pensioners and lower income earners feel that they’re going to be hit in December’s budget, and when that happens there’s going to be outrage, because those at the top of the food chain aren’t being touched,” said Laura Waters, a former employee of retailer Laura Ashley who lost her job when the company closed its flagship Dublin store.

The government’s plan is to cut the budget deficit to 3% of gross domestic product by 2014 from what some economists estimate is a gap of 32% this year. The other main parties have largely signed up to that target figure, but reaching any kind of consensus on the details will be far harder.

It is now no longer a matter of whether but when the Irish government formally approaches the European Financial Stability Fund (EFSF) for a bailout, correspondents say.

A spokesman for Ireland's department of finance said the country was funded just before the middle of 2011, the public-service RTE broadcaster reported.

The IMF and EU had to step in with a 110bn-euro bailout package for Greece in May, sparking a Europe-wide sovereign debt crisis.

The Government has repeatedly said that it is not seeking a bailout from the EU or IMF. Mr Lenihan said on Friday: ‘We have not, contrary to much speculation, applied to join any facility, or avail of any facility.’

Julian Callow, chief European economist at Barclays Capital in London, joined the online commentary, tweeting: ‘It seems difficult for Ireland to avoid tapping the fund unless they have new rabbits to pull out of there hat. ‘

Meanwhile Portugal’s foreign minister said Portugal’s failure to adopt a broad coalition government to deal with the financial crisis could result in it being forced to abandon the euro.

However, the unusual move underlined fears that Ireland is edging towards bankruptcy,unless it receives further support from its Eurozone neighbours.

0verblood

Can we ban these people?

RobitTV

0verblood wrote: »

Can we ban these people?

?

Ian Beale

Irelands nearly bankrupt :O



Nah sure we have loads of property, we'll be grand.

DHYNZY

Ah we'll be grand.



Now stop with these threads!

bnt

Thread Fail:

• There are already several threads on this.
• Who wrote all that? You? No? If you quote someone else, use "quotes", or the Blockquote tags for a block of text. That's what they're for. Otherwise, it looks like you're claiming someone else's work as your own.
• Why paste in a whole article? Rather quote a representative bit and link to the source.
• But, again, why start another new thread on this?

Hey OP - Don't worry! It's going to be OK

bonerm

I have to go make my breakfast now.

themadchef

In 2006 most people laughed at the idea of a bubble.


Wonder what we will think looking back on these threads in 2014?

No one got it right back then (anyone who did was laughed at), no ones getting it right now.

God only knows what's down the road for us, hopefully we will come out of this a little more scared to part with our hard earned cash. Maybe the Celtic tiger cubs can learn some survival skills along the way.

galwayrush

themadchef wrote: »

In 2006 most people laughed at the idea of a bubble.


Wonder what we will think looking back on these threads in 2014?

No one got it right back then (anyone who did was laughed at), no ones getting it right now.

God only knows what's down the road for us, hopefully we will come out of this a little more scared to part with our hard earned cash. Maybe the Celtic tiger cubs can learn some survival skills along the way.

Feck it Chef, i'll have a medium rare t-bone steak with lashings of brandy pepper sauce.

Super-Rush

It was Terry's birthday yesterday. 35 he is.