Taoiseach Brian Cowen will meet the euro zone heads of government in Brussels today to discuss the Greek bailout and Irelands €1.3 billion contribution to the IMF’S rescue plan for the Greek economy. Greece currently has the highest debt burden and the largest interest-rate bill of the euro countries.
Some economists have commented that the Greek bailout decision is not overly welcomed and could be the detriment of all euro countries, including Ireland. In order for Greece to get their act together over the next two years their bailout will have be accompanied by extremely harsh conditions; “If the pain is too little and Greece fails to understand they have to sort themselves out and it ends up costing Germany, the interest rate will go up, which will affect us all. It would mean an additional 0.25% on borrowing, so the cost to us all could be huge… In Ireland it will slow our recovery, more people will have problems with mortgages and companies will be unable to expand”.
Have your say: The Greek Bailout
- Will is slow Irelands recovery?
- Or will the EU show the world knows it is serious about making Greece reform its economy, and inturn this would relax the markets?