Ireland did everything right, according to the bankers of the world. They slashed wages, services, and public employment. After two years of sacrifice what do they have to show for it?
Wages have fallen and unemployment is around 13%. That much was expected. What wasn’t expected is that the markets would punish the nation for crushing the domestic economy because of the austerity measures.
“We do not really see how Ireland is going to be able to ‘hold on’ without EFSF help,” one euro zone source with knowledge of the talks said.
“Obviously since this implies a pretty tough programme for the government and to some extent a loss of sovereignty, they want to think twice…” the source said.
In other words, things are going to get even harder for Ireland. What will Ireland get in return? The ability to go even deeper into debt.