Does supporting Ireland's economic woes....
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give a lie to UK's hefty deficit?
The UK has offered a direct loan to the Irish Republic in addition to contributing to an international rescue, George Osborne has said.
The direct loan is estimated to be in the region of £7billion and the additional amount of money that Britain is giving to the international effort has not yet been announced.
I understand the need to support their economy as our nearest trading partners but are we not propping up a failing economy and papering over the cracks by contributing to the international response, which aims to support the euro zone? We opted to remain outside of this monetary exchange mechanism but now appear to be supporting it but in whose interests?
It is unknown when and if ever Ireland will be able to repay these loans either directly to the UK or to its fiscal masters in the hinterland. Surely rather than propping up this failed monetary system, serious consideration should be given to providing Ireland and the other euro zone country's yet to announce their need for a bail out with a fiscal system that permits them to make independent monetary decisions in their own interests rather than as a collective regeime.
Doing this might be the right and proper thing to do but given our own austerity measures how can we afford to be so generous?
Responses (1)
I haven't got a clue how we are going to afford it but I totally agree with doing it.
Although I agree with some of your discussion points, I don't believe that it is papering over the cracks of the Irish economy and I am sure that we would be contributing a lot more if we were part of the Euro (and would probably be in an even worse situation ourselves). All economies are recovering from a recession, some better than others, but this financial aid has also forced a number of changes to the Irish financial budgets which are for the better.
It will take the UK a long time to get ourselves out of our deficit and this will also be the case with the Irish, but economies recover as has always been the case so I am sure the money will repaid (and I am sure that some of these dates have already been set as part of the agreement).
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