Europe "riots" since the debt crisis Ireland

Europe "riots" since the debt crisis Ireland
- Europe is in danger of riot crisis spreads throughout the euro area, because after Greece, Ireland and now is going to be able to Portugal, Spain will need the support of Europe.


Ireland Prime Minister Brian Cowen for EU aid and rescue the economy, after several weeks of decline.
Blizzard of bad news from Ireland are spreading across Europe


After Greece, earthquake from Ireland - the country is often honored as "economic miracle" has been simmering for so long, when the bond market recently Ireland suffers very badly affected, despite the commitment delegation of Prime Minister Brian Cowen that it will not be used to fund aid from Europe. Government of Ireland also said they had enough capital to cover expenses until May 7 / 2011 and does not require issuing more bonds this year.

However, earlier this month, yields of Ireland has risen to record highs, sparked fears that the debt crisis and budget deficit of the euro area may be entered Two dangerous period, only six months after the block, these countries must take action to rescue Greece. 11/11 days, yields 10-year government of Ireland has increased to 8.929% - its highest level since the European euro into circulation in 1999, placing the bond market in Europe extreme stress. Yields of Ireland recently increased because investors increasingly worried about the status of the country's public debt.

Mr Cowen then had to ask the European Union (EU) and the International Monetary Fund (IMF) rescue economy after several weeks of refusing to rescue that Ireland should be to deal with financial crisis and every budget. Ireland's banking system has voiced support for help to be able to "survive" when the budget deficit of the country's 10 times the permitted level of the EU this year. European diplomats then expected to Ireland by the EU and the IMF agreed to provide loans of about 90 billion euros (123 billion). And on 21/11, the EU finance ministers gave the green light for a financial plan. Earlier, Ireland government funded banks 50 billion euros. Consequently, the lack of public financing has increased, or 32% of total domestic product.

However, the dose brought international bitterness. Ireland pledged to reduce spending to save 15 billion euros in the next 4 years the rate rose last budget deficit from 32% to 3% of GDP. In Dublin, the press and many people protested Government House condemns the decision to study abroad and this is an "attitude of surrender, a disgraceful decision." The people of Ireland have twice rejected EU treaty, Brussels does not want to be caught up a series of taxes, while the advantage of tax policy has helped Ireland to grow strongly in recent years.

Thus, Ireland as the government faces financial difficulties, the politics of this country has slipped into recession. Despite the serious situation, Prime Minister of Ireland ruled out resignation and promised that he will organize general elections for the first time in January next year after Congress passed and the application of 2011 within budget 4 years.

What will happen?

Unlike Greece, this support needs of the EU and the IMF Ireland is to avoid the bank, not the state is bankrupt. In Ireland the financial crisis, European countries do not want this country to ask for help early, but also quick handling, if compared with the Greek problem. Earlier this year, Europe has lost many months of debate, convinced the new plan offers 110 billion euros (150 billion U.S. dollars) to help Greece. After Greece, a mechanism to support member countries euro bloc was established with a total capital of up to 750 billion euros. Thus, Europe has reacted quickly in the case of Ireland.

But the real question that the markets are asking is what will happen after 2 years, when the support program ended? Will the efforts of governments, the EU and the IMF have enough to prevent the insolvency of many countries and many banks? In the immediate future, there are concerns that financial stress can affect throughout Greece, Ireland, Portugal and Spain - the country is said to weaker members of the eurozone - and even photos Italy dominated the whole. Analysts said that the risk of spreading financial crisis has weighed heavily on Europe, especially for Portugal, Spain. The two countries have the financial situation is not stable and can be difficult, expensive price to pay when borrowing money in the market through issuing bonds.

In recent days, the Portuguese government has sought to reassure international financial markets. However, interest rates on bonds Portugal 24/11 reached only 6.560% instead of 6.50% on Friday last week, 19/11. Banker commented if this pressure continues, the Portuguese would have called for emergency assistance. Right now, Portugal may not have needed the support of Europe next year, the country faces a debt maturity of 25.6 billion euros, including 19.7 billion to pay for six months of 2011.

We have many critics say the policies of the Portuguese government is "pushing people to poverty and tragedies." Anger and fears of debt crisis in Europe, a crisis seemed to be unstoppable rate, not only in Portugal but is spreading across the continent: Workers strike made a series of factories in Portugal to be closed; Ireland to cut spending the most powerful in history, and English Students in Italy clash with police during demonstrations against education budget cuts. Spanish case is also disturbing when the Central Bank acknowledged the impact of financial crisis is Ireland's debt weighed heavily on Spain.

The major economies are struggling with increasing deficits swell after the global financial crisis forced many countries to take action to rescue banks, while serious recession later reduce tax revenues. Last month 5 / 2010, EU and IMF for the Greek forces in aid worth 110 billion euros to pull this country out of bankruptcy, causing financial strain in the euro area. Bond interest rate increases are not sustainable and is causing some worry about what will happen next.



Nguyen Viet
Synthesis