Current Euro economic crisis
In light of the Ireland’s economy, here are a few facts brought together by some of the expert commentators:
Ireland’s economy is effectively bankrupt and the big concern is that the debt crisis could spread to Portugal and Spain, Italy and even France where their deficit credentials are deteriorating by the day.
The concern was that Ireland was resisting pressure to take a European handout, but there is confidence that European ministers, having met in Brussels, are about to announce a recue package.
American markets are affected by the Eurozone crisis, but also by possible steps by governments in Asia to slow fast-paced growth prompting investors to stay away from risky assets.
Asian stocks have dropped due to concern that China will take further measures to slow economic growth.
UK markets have remained relatively stable and even shown positivity due to the possible imminent Irish bail-out.
Although UK tax payers are likely to be asked to help bail out Ireland, the effect on the UK economy should not be devastating.
The real problem for the UK would be if the other larger European economies mentioned here fail.
But, the immediate danger in Ireland would appear to be containable if the bail-out happens.
The UK may still suffer due to; a further fall in the Euro, increase in public debt due to a bail-out, British banking losses as a result of Irish banking exposure, and a reduction in Irish exports.
However, commentators think we could sustain all of that. The bigger issue would appear to be if Ireland leaves the Euro…
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