“Stop arresting me! Stop arresting me!” the emotional stress for the week boiled over for one man, who stood in front of the minister’s car entering into the government building before being arrested.
A week after the Irish Republic dismissed the need of bailout, the Irish Finance Minister Brian Lenihan finally admitted that international bailout is inevitable: “there will be a meeting in the government this afternoon, I will propose to my colleagues to formally apply for a program.”
Inevitable request for economic help
Irelands’ main banks have been frozen out of international market, and witnessed a capital fly in recent months.
BBC reports that the total value of the bailout will be less than 100 billion euro. 85 billion pounds. The fund will be spent on covering the 90 billion shortfall for day-to-day government spending, and hopefully to avoid the country from plunging into economic chaos and stabilize the fragile economy.
The Irish government’s handling of the economic crisis has sparked fury among many Irish public.
Shawn Ross, An Irish independent editor and a senate from the Irish Parliament said:” this is utmost humiliation for Ireland, but now it is very urgent to seek a bailout from the IMF. Public anger is apparent.
Once the Celtic Tiger
Until two years ago, Irelands was the greatest economic success in Europe. Over two decades, it grew at the drastic economic rate as Asian fast-growing economies until its GDP per head overtook that of the UK. But much of the growth came largely from borrowing by the Ireland banks from the international market.
These potential property bubble posed by the unstable borrowing finally exploded due to overlending to developers and house owners.
The UK contribution
According to BBC, the UK has offered a direct loan to the Irish Republic in addition to contributing to an international rescue, George Osborne has said.
“I think it is highly likely that there will be a British contribution.I want Britain to do the bilateral commitment to Ireland. Because Ireland is our close neighbor and it is in Britain’s national interest to help.”
When asked if the rescue would be about £7bn, he said “it’s around that.”
A potential plight for the EU
The EU finance ministers are said to have a unscheduled meeting, hoping the Irish Bailout could ease the pressure on the other deeply indebted members in the Euro zone.
In May in the Greek crisis, the IMF and Eu put together a budget totals 750 billion euro, at that time the funds seems can tackle the biggest threat with ease. Now to rescue the two smallest members of the Eurozone Greece and Ireland the fund need to be 200 billion. But now this rescue move is not guaranteed. We can see the remote and severe threat to bail Portugal, Spain and Italy out as well. There are concerns that to save all the three countries will be beyond the capability of the EU.
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