IMF bailout warning to Ireland

BoyRacer · May 2, 2010, 9:11am

IMF bailout warning to Ireland -> timesonline.co.uk/tol/news/w … 114117.ece

A former chief economist with the International Monetary Fund (IMF) has warned that Ireland, Spain and Portugal could yet need a Greek-style financial bailout.

Kenneth Rogoff, a Harvard economics professor, said the sudden surge in international bond yields could make it more difficult for the three economies to reduce their massive budget deficits. Rogoff said the increased cost of borrowing would heighten the need for austere budget measures.

His warning was echoed by Colm McCarthy, the UCD economist who drafted An Bord Snip’s list of proposed government spending cuts last year. McCarthy predicted that Brian Lenihan, the finance minister, could be forced to make even deeper spending cuts in next year’s budget because of Greece’s debt crisis.

Under the government’s austerity plan agreed with the European commission, Ireland needs to find €7.5 billion in annual spending cuts between 2011 and 2014. Lenihan has said around €3 billion of these cuts have to made next year.

there is more

spqr64 · May 2, 2010, 9:16am

BoyRacer:

IMF bailout warning to Ireland -> timesonline.co.uk/tol/news/w … 114117.ece

A former chief economist with the International Monetary Fund (IMF) has warned that Ireland, Spain and Portugal could yet need a Greek-style financial bailout.

Kenneth Rogoff, a Harvard economics professor, said the sudden surge in international bond yields could make it more difficult for the three economies to reduce their massive budget deficits. Rogoff said the increased cost of borrowing would heighten the need for austere budget measures.

His warning was echoed by Colm McCarthy, the UCD economist who drafted An Bord Snip’s list of proposed government spending cuts last year. McCarthy predicted that Brian Lenihan, the finance minister, could be forced to make even deeper spending cuts in next year’s budget because of Greece’s debt crisis.

Under the government’s austerity plan agreed with the European commission, Ireland needs to find €7.5 billion in annual spending cuts between 2011 and 2014. Lenihan has said around €3 billion of these cuts have to made next year.

there is more

Now you see the reason for the governments slight of hand in the public sector deal.