Interesting ratio to follow in eastern europe new and fragile democracies as well " the number of MP for 100,000 citizens .
I bet in case of Romania, we are fine, despite for the president push to reduce the number of MPs to 300 maximum.
Austerity threatens growth, but markets leave Dublin little choice
DUBLIN (MarketWatch) — After promising a 15 billion euro ($20.7 billion) austerity package of spending cuts and tax hikes, Ireland’s government may be facing its last chance to avoid a bailout by persuading markets that the country can repay its debts.
sympathy for Brian Cowen’s Fianna Fail–led coalition is almost nonexistent among Dubliners, who see the government as the biggest villain in the collapse of the Irish economy.
he prime minister, is reportedly the highest-paid politician in Europe and where each member of the lower house represents just 26,000 constituents — compared with more than 94,000 each in the U.K.
After an economic boom that saw the country dubbed the Celtic Tiger, which lasted more than a decade, the Irish economy has shrunk for nine of the last 10 quarters. Construction, which fueled the boom, has collapsed, and taxpayers are facing a €50 billion bill from bailing out the banks that funded the unsustainable growth.
The government’s plan is to cut the budget deficit to 3% of gross domestic product by 2014 from what some economists estimate is a gap of 32% this year. The other main parties have largely signed up to that target figure, but reaching any kind of consensus on the details will be far harder.
Reuters
Irish Finance Minister Brian Lenihan.
If the government fails to win approval for the budget, it will have to call a general election. And a vote could still come within months as by-elections for four currently vacant seats will likely see the coalition majority wiped out.
Yields on 10-year Irish bonds have soared in recent days and were around 8.5% on Wednesday.
Read more at www.marketwatch.com
The political uncertainty is adding to the pressure on borrowing costs created by Germany’s demands that bondholders absorb some of the losses in any future bailout, which has also undermined demand for debt in Portugal and other higher-risk countries.
Niciun comentariu:
Trimiteți un comentariu