When will Ireland breach the European Stability and Growth Pact?
We wont breach the pact, because the economy will keep growing
The Stability and Growth Pact was designed to ensure no eurozone country borrowed too much and undermined the value of the euro.
Irelands budget surplus and low debt to GDP ratio were the envy of europe over the last few years. However the situation could change rapidly if tax revenue receipts collapse due to lack of activity in the housing sector.
Ive believed for some time that Ireland would eventually come full circle and wind up strangled in debt again. Its just a question of when?
I agree with TUG - the question is moot as there won’t be a country that isn’t breaching the pact, IMO. Even Luxembourg will be in trouble when all the hot money leaks out of its tax-haven banking system.