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!
Austerity can only be implemented in the shadow of a concentration camp.
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 21 51 comments
by afew - Jul 21 13 comments
by gmoke - Jul 21 3 comments
by Migeru - Jul 17 54 comments
by Frank Schnittger - Jul 16 61 comments
by Oui - Jul 19 4 comments
by DoDo - Jun 12 29 comments
by Frank Schnittger - Jun 30 55 comments
by Frank Schnittger - Jul 2151 comments
by gmoke - Jul 213 comments
by afew - Jul 2113 comments
by Oui - Jul 194 comments
by Migeru - Jul 1754 comments
by Frank Schnittger - Jul 1661 comments
by Oui - Jul 623 comments
by Oui - Jul 41 comment
by afew - Jul 248 comments
by gmoke - Jul 15 comments
by Oui - Jul 17 comments
by Frank Schnittger - Jun 3055 comments
by gmoke - Jun 2813 comments
by Oui - Jun 251 comment
by ceebs - Jun 244 comments
by Oui - Jun 241 comment
by DoDo - Jun 236 comments
by DoDo - Jun 1229 comments