Friday, June 3, 2011

DEBT CRISIS - Ireland to the sinking

Ireland is on the brink of ruin. Six months after the bailout of 85 billion euros orchestrated by the EU and the IMF, while the Irish government debt is ranked just a notch above nil and that the rush to Irish banks began to threaten private accounts, one would think that the rescue operation launched last November has already failed miserably.

Instead, at least from the perspective of the architects of the ECB, it was a resounding success. One thing you should understand about the bailout Irish. He did not aim to recover sufficiently to finance the country that the government can resume borrowing in bond markets at reasonable rates.

For most people, that's theoretically a bailout. Instead, the bailout Irish had only one goal was to scare the Spaniards so that they fall into line, demonstrating vividly that the rescue of the EU are not the fainthearted. And until proven otherwise, the plan of the ECB has worked. Given the choice between finishing tied hand and foot as Ireland - the object of international derision, forced to pay exorbitant rates on the bailout funds, while his ministers to account to a Hungarian lecturer - and make amends, they obviously chose the latter.

But why was it necessary, or at least appropriate for the EU to impose an economic collapse to Ireland to scare Spain? [...] Read more on Presseurop. had

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