By James McKee
In a move that comes off as desperate to say the least Ireland is taking measures to gain support in the EU for a lessening of austerity measures imposed upon them. The EU’s 86 billion Euro bailout of the Ireland was necessary to preserve the overall stability of the region however the strings attached are upsetting many in Ireland. The country has already promised to slash its budgets in deep, sweeping moves that many in Ireland disagree with in order to satisfy conservative countries like Germany. There have already been protests and other gatherings where Irish citizens have spoken out about the proposed budget cuts promising more if the measures passed.
Irish banks have not been being operated in such a way that would foster economic stability according to both European and American analysts. The fate of Europe and Ireland are intertwined however despite this there is growing discontent in both Ireland and Europe for the arrangement brokered. Neither side is happy and Ireland is seeking to change the arrangement by proving to Europe that they are serious about economic viability. Only time will tell whether or not Ireland’s efforts to find some middle ground are successful.
Ireland was in such a bad position financially that they would have accepted nearly any offer presented to them by the EU for a bailout. Now that the requirements of that bailout are an everyday consequence Ireland’s citizens and leaders are fed up. The Euro will see serious loss on the Forex exchange against the USD and other major currencies if Ireland’s population becomes one that is malcontent. Ireland would not experience the full-blown riots seen in the Middle East, however labor strikes and other peaceful measures could prove to be very debilitating for the country. The EU is so interconnected that even the strife of a small country like Ireland could very easily have reverberating consequences for the entire continent.
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.