Ireland warned on Thursday that a surge in its borrowing costs to record highs had become "very serious" and the EU said it was ready to act should the humbled former "Celtic Tiger" require a rescue from its euro partners, reports Reuters.
"The bond spreads are very serious and there is international concern throughout the euro zone about that," Irish Finance Minister Brian Lenihan said in Dublin.
Ireland is fully funded through the middle of next year, so there is no immediate liquidity crisis, but the climbing interest rates on Irish debt makes it extremely expensive for Ireland to borrow money.
So the questions now become: Is the EU bluffing about standing ready? Does this mean the ECB will print money to bailout Ireland, when needed? What does Germany have to say about all this?
On deck: Portugal.
It is extremely expensive for the Irish State to borrow money. So what? Let the State shrink. Why should the State borrow in the first place? Pardon my pour out.
ReplyDeleteIreland go Broke!
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