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Wednesday, November 24, 2010

Irish Hold All The Cards

Irish households are coming to grips with the true cost of accepting the EU/IMF bailout, and of remaining in the Euro (nothing in life comes free), if the Irish accept the terms dictated by the EU.

It is estimated that the austerity package that the government will have to force through, in order to receive the bailout on the EU's terms, will cost the average Irish household £3K in increased taxes.

What people don't seem to realise is that the Irish government can, to some extent, stick two fingers up to the EU wrt the terms and conditions being placed on the bailout package.

The EU is desperate to avoid the contagion spreading, and to prop up the faltering Euro. Come hell or high water it will do evreything it can to keep the Euro afloat.

The Telegraph quotes Wolfgang Schaeuble, the German finance minister, who let the cat out of the bag:

"The uncertainty puts the future of our currency at stake.

If we cannot defend our common currency as a sustainably stable currency the consequences would be incalculable
."

The Irish should dictate the terms of the deal to the EU, not the other way around.

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