New York Times (editorial): “Ireland must renegotiate debt”


Via Irish CentralNew York Times Editorial – Ireland, Under New Management:

Ireland’s “Celtic Tiger” boom of the late 1990s was no mirage. Today’s problems began after Ireland started using the euro in 2002 and low interest rates and extremely lax bank regulation ignited a speculative housing bubble. When that burst in 2008, Ireland recklessly guaranteed the full liabilities of its six largest banks with public money. Those liabilities turned out to be far more than the government had or could raise, eventually forcing it into the European bailout. Now most of that borrowed money is going just to keep those banks afloat

Meanwhile, Ireland’s people have paid a terrible price. Unemployment, under 5 percent in 2007, is more than 13 percent and rising. As in the bad-old days Ireland thought it had left behind, growing numbers of young people are moving abroad in search of work…

Irish voters have spoken clearly. European leaders should respond wisely. It is in no country’s interest to lock Ireland into long-term economic ruin.

Read more.

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This entry was posted in Accountability, Bankers' Bailout, Budget, Civil Rights & Liberties, Debt Default/Restructuring, ECB/IMF, Economy, Elections, Emigration, EU, Euro / Sovereign Money, Geopolitics, History, Housing Bubble, Ideology, Independence/Nationalism, ireland, Irish America, Solutions and tagged , , . Bookmark the permalink.

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