The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
wWy do you assume that Ireland will always be in recession, never grow again and never be able to balance it's budget? And never gain to able to get lower interest rates?
Do you really think a hedge fund - or any private lender woulds give a credit to the irish banks at 1.75%?
The current negotiated rate for the bailout loan is 5.8%, which looks pretty damn punitive to me - and certainly if you want a country to get out of a depression, loan sharking isn't the most effective way to do it.
Unless you're arguing the case for the loan sharks, of course.
I suppose someone has to.
Burn the ECB! 1.75% is usury!
Friends come and go. Enemies accumulate.
Belgium had a debt of 115.5% to gdp in 1996 and 73,3% in 2007. So there is real example not that far away.
So why should be impossible to balance the budget in five years or so?
"Austerity Now" is the Brussels Consensus, though it might well be a remake of a famous Coppola movie from the 70s, starring Marlon Brando.
Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman
If the ECB and IMF were not demanding Austerity Now!, then we wouldn't be having this discussion, because Ireland would be perfectly able to repay the debt in due time. But Austerity Now! is what is being demanded, and what will cause Ireland to default. Well, better to default now, and let the people who are demanding Austerity Now! eat the losses, than first crash the Irish economy and then default, leaving the Irish public in a smoking crater and the people who are demanding Austerity Now! still eating very nearly the same losses.
Defaulting is a zero-sum game. Not defaulting is a negative-sum game.
by Frank Schnittger - Jul 1 103 comments
by Frank Schnittger - Jul 4 13 comments
by Metatone - Jun 29 50 comments
by chumchu - Jul 2 37 comments
by Frank Schnittger - Jun 28 32 comments
by Luis de Sousa - Jun 28 24 comments
by DoDo - Jun 23 22 comments
by das monde - Jun 26 35 comments
by Frank Schnittger - Jul 413 comments
by chumchu - Jul 237 comments
by Frank Schnittger - Jul 1103 comments
by Metatone - Jun 2950 comments
by Luis de Sousa - Jun 2824 comments
by Frank Schnittger - Jun 2832 comments
by das monde - Jun 2635 comments
by DoDo - Jun 2322 comments
by gmoke - Jun 233 comments
by DoDo - Jun 214 comments
by Frank Schnittger - Jun 20356 comments
by melvin - Jun 1560 comments