Pay no attention to that crisis behind the Euro

  • Private Eye, no. 1315, p.12 – ‘The Agri Brigade’ – of interest to the Irish state’s farmers; think the Euro is so great for your business?: … farmers within the eurozone represent UK farmers’ most important competitors… It is a big help to British farmers, therefore, if those potential imports are priced in a strong euro… There has been no more reliable predictor of UK farming’s profitability over the past decade than the relative strength of the euro against the pound. [From CSM article on Ireland below: “Agri-food is… worth 9 billion euros ($11.2 billion), with 83 percent of the sector’s exports going to EU countries.”]
  •  The EconomistIreland’s crash; After the race:
    “Once among the richest people in Europe, the Irish have been laid low by a banking collapse and the euro zone’s debt crisis…”
    The terms of the European element of the bail-out arouse particular ire. There is something approaching a consensus in Ireland that the country rescued Europe (specifically, German and French investors that had lent heavily to Irish banks) last November, rather than the other way around. There have been heated exchanges between Irish and EU politicians over how to apportion the blame for Ireland’s crash. Some compare Ireland’s bank guarantee unfavourably with Iceland’s decision, after a similar meltdown in October 2008, to let the banks go to the wall, creditors be damned. Eyeing an opportunity, the parties that are likely to form the next Irish government have made extravagant campaign promises about renegotiating the bail-out package. They may find it difficult to keep them once in office.
  • Irish Times – 2/June, 2012 – Kenny seeks bank debt deal from Merkel after Yes vote;
  • Irish Central – 5/June, 2012 – German government slam the door on new bank deal for Irish;
  • TheJournal.ieKrugman: Ireland voted for a ‘bad idea’ – and euro could collapse in two years;
  • Christian Science MonitorAs Ireland votes on EU treaty, many ask if it’s worth cost of membership: … unemployment is at 14.3 percent, up 0.1 percent since this time last year. In 2007, it was just 4.6 percent.
    Despite spending cuts and tax rises totaling 24 billion euros since 2008 (with another 8.6 billion euros to come before 2015) the country is still spending more than it raises in taxes. In 2011 it ran a budget deficit of 13.1 percent, 3.7 percent directly due to the nationalization of its banking debts, the remaining 9.4 percent due to the contraction of the economy.The news seems to keep getting worse. Accountants Kavanagh Fennell today published a report saying business insolvency is on the rise, with 155 companies going bust in April. The construction sector was the hardest hit, followed by retail.Labor union economist Michael Taft says government policy, including the proposed EU stability rules that forbid deficit spending, is what’s stalling recovery.
This entry was posted in Agriculture, ECB/IMF, Economy, ESM / European Stability Mechanism, EU, Euro / Sovereign Money. Bookmark the permalink.

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