Ireland may exit euro region in 2010

[DCon]

Ireland is among countries in an "intolerable" economic situation that may lead to bailouts and exits from the euro region before the end of 2010, according to Standard Bank Plc.

"We question the ability of countries like Ireland and Greece to grow out of the current crisis," Steve Barrow, head of Group of 10 foreign-exchange strategy in London, wrote in a note today.

"With interest rate cuts, exchange rate depreciation and significant fiscal support all off limits for these countries, it seems likely that bailouts — or even pullouts from EMU — are likely" before the end of 2010.

Standard Bank: Ireland may exit euro region in 2010 - Irish, Business - Independent.ie

[Gimpanzee]

Fantasy stuff. If its bailouts or leaving the EMU, it'll be bailouts every time.

[liamfoley]

Okay, DCON, but what do you think?

[TradCat]

We are in the ludicrous position of cutting drink prices and nurse's pay at the same time in order to try to operate in the Euro straight-jacket.

Of course we have to try but there may well come a time when the only way of saving the euro may be to allow a few states to exit in an orderly manner.

It won't solve our problems but it could give us a sporting chance of solving them ourselves.

[ManOfReason]

We are in the ludicrous position of cutting drink prices and nurse's pay at the same time in order to try to operate in the Euro straight-jacket.

Going by the nurses I knew in my younger days, it probably means they break even.

[liamfoley]

Excuse me if this is a stupid question but if any country were to exit the Euro would day to day transactions still be conducted in Euros or another currency? What do we do, start printing punts again? And would it make a real difference.

[Middleaged]

CNBC had a discussion on this about an hour ago.... it won't happen... even the Greek Finance Minister said that he'll introduce austirity measures to get Greece back to the 3% deficit figure....by 2014 I think he said..... Weber also said that they have a year to show progress

and he's a socialist (not Weber)

[Bi ciuin]

I really dont see how the punt will save us.

But that said, many people are expecting a new credit crisis next year, that will finish of countries like the US and UK who wii be top of the table for handouts.

This will leave little old Ireland broke, so everything from public pay to welfare and new taxes will have to come into play to save the country.

No more bail outs for us!

I can see protectionist pacts of nations joining togeather and we will end up in a pact with the UK.

[Enda the Mayo peasant]

Is it possible that the shinners will be proved right?! Even the broken clock is right twice a day I suppose.

[Clanrickard]

If people had balanced budgets for the last decade and had paid off their debts none of this would have happened. It makes me made thinking of Bert and cheque book economics and Clinton acceding to the demands of Wall Street and Blair and his back door taxes and Brown and his targets. You have x you spend x should the guiding motto of government.