Inviato il 2 December 2010 da Rod
The Irish government faced imminent collapse during these days, but only after signing for acceptance of a plan to save 100 billion dollars, paving the way for a new election early next year and injecting the threat of political instability within the European financial crisis that is already at the very limit.
Faced with the high-level defections from his coalition government, Prime Minister Brian Cowen said he would dissolve the government after the passage of the 2011 budget, which will take place in early December. His announcement capped a bad day for Ireland, with the agency Moody’s Investors Service has downgraded the debt rating of Ireland.
By accepting the new election, Cowen was sure to become the first political casualty of the debt crisis in the euro area. Meanwhile we awaits developments, given that financial markets and policy in the euro area have to calculate the austerity measures to be imposed.
The imminent collapse of the Irish Government, after the use of the rescue, only seems to confirm fears that the financial crisis is far from passed. Analysts have indicated that heavily indebted countries such as Portugal and Spain, that are making of unpopular budget cuts, could soon face an uncomfortable choice too.
It will be the same story in all these other countries and Ireland is only a step forward and has done things before. All countries must make major adjustments.
Meanwhile, Cowen’s abilities have helped to maintain in the country for three consecutive years, in a situation of economic contraction, followed by the collapse of the largest banks outside of Iceland, and now the use of this bailout forcing the country to review its accounts.
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