Nov 18 2010
EU and IMF Arrive in Ireland
The inevitable has finally happened – the EU and the IMF have arrived in Ireland to try to resolve the Irish mess. See Talks with IMF to begin tomorrow for more details.
Personally, I am relieved to see them arrive. I think that our inept politicians are not the right people to be trying to fix this mess for the following reasons:
- They are generally inexperienced and uneducated in financial matters (The minister for finance is a solicitor!).
- They oversaw the demise.
- They act primarily in the interest of their developer and banker supporters.
- They are unable to stand-up to a very loud civil service that is only interested in its own welfare.
I expect to see real, and long overdue, reform now!
November 18th, 2010 at 20:09
Ireland can’t afford to prop up the failed banking sector, so choices are limited. However, loss of sovereignty is not a good thing. To quote one commentator:
“A European bailout of Ireland would be manageable, and probably cost less than the Greek rescue. But Ireland doesn’t want it, because the EU and IMF would force austerity measures onto the island nation that could effectively end its appeal as a business-friendly nation with a high standard of living. Since Ireland is wealthier than other European nations that would essentially be lending it money, social programs would end up gutted, and taxes would soar. And Ireland’s 12.5 percent corporate tax rate–one of the lowest in the developed world–would almost certainly go up, taking what’s left of the roar out of the Celtic Tiger. If multinational businesses abandon Ireland, it could fall quickly down the list of Europe’s most prosperous nations.”
http://finance.yahoo.com/news/Why-the-Irish-Crisis-is-Going-usnews-4028366968.html?x=0