What an EU bailout for Ireland could mean for Britain! - At a time when the UK Cameron lead coalition government is hitting the population with cuts to bring the country back under control after 13 years of "spendaholic" populism politics from Labour.
The cuts to UK services & defence to make the country more competitive in an ever more competitive world it is then crazy that the government continues to send more money to the EU as part of an un-agreed budget increase & not forgetting the Accounts for the EU havent been signed off for more than a decade! Can you imagine if HSBC didnt sign of its accounts for 10 years or BP?
The UK government should have cut its contributions to the budget to the EU by the same criteria it has used for domestic spending & told them to lump it. Cuts should have been acrcoss all expenditures not least the contributions to the biggest Quango of the lot, the EU!
To top of the farce of increased spending to the EU to finance PAY RISES! On top of this the #UK is not & will not be a party to that crazy club the #Eurozone! however it is yet again being asked to empty its pockets to the tune of the value of the first wave of cuts to once again prop up the #Euro
Part of the Irish bailout will require a UK contribution of more than £7 Billion! Now I'm not one to say Ireland shouldn't be bailed out, it should, but it should be bailed out by the ECB which is responsible for fiscal governance within the Eurozone.
The EU should have raised lending rates to Ireland 10 years ago to slow down the economy and stop the crazy goings on from the Ahern McCreavey period. A bank doesnt lend to every customer at the same rates regardless of circumstances. Ireland was borrowing free money & they couldnt spend the money fast enough & instead of creaming profits everything was piled into the next even bigger project with nothing put aside for the storms ahead.
The Ahern lead government were only too quick to roll over & let the Unions tickle their tummies as the agreed yet another set of pay rises for both the public & private sectors increasing the costs to the running of the nation & maintaining inflation well ahead of their counterparts within the Eurozone.
Ireland is a micro economy compared with the likes of Germany, France, Italy & Spain. The ECB could solve Ireland problems simply with Quantitive Easing without effecting the strength of the Euro & keeping the country out of the media damaging the "Good Name" of the Euro.
€70 Billion (£60 Billion) of printed liquidity would get Ireland back into the ring & would have two effects. Knowing that the money was there the bind holders wouldnt be charging so much to lend funds as they know their funding would be safe. A new bank could be created fore the high street with strong funding & Anglo could be liquidated with immediate effect & their speculating bond holders can be left spitting feathers once the Govt is in a position to withdraw the bank guarantee scheme.
View from the Telegraph http://t.co/95M03U1
