LinkBack URL
About LinkBacksDoes it's weakness hasten the day when Britain adopts the euro ? Now at 86 p or so, not too long ago it was nearer 66 p.
Does it's weakness hasten the day when Britain adopts the euro ? Now at 86 p or so, not too long ago it was nearer 66 p.
That's brutal news for our Exporters, esp native ones.Originally Posted by jerryp
Surely this will just drive more export oriented business into the Wall?
Europa Conventus Delenda Est
Yeah and its already showing in the figures. Traditional exports (like food and drink) are down 7% - these are the labour intensive native industries. Sterling has been hovering around 80p for sometime. New contracts for next year are being negotiated around this time and I bet Irish firms are losing bigtime at the moment in the UK market plus UK exporters will be slaughtering Irish firms in the Irish market at these levels, UK firms will be locking in their Euro requirements for next year at these exchange rates. I would expect mass redundancies in the New Year if we are still consistently over 80p for the next month.
It's also going to severely damage our tourist industry if sterling doesn't recover some of its value by next spring at the latest.
Ireland is already an expensive enough destination for British tourists. Plus, more Irish people will go to the north and Britain for better value holidays.
Why pay €80 per night for a hotel room in Donegal when you can get one in Derry for £50.00 (less than €60) per night?
However, it should reduce Irish inflation: we still import a huge percentage of all our goods from the UK so a weaker sterling should lead to price falls.
On the other hand, it'll mean that Irish producers will find it harder to compete with imports...
This is seriously bad news for the Irish economy - And means absolute Armageddon for the Irish property market.
Irish Property : The only question is - How low can it go ?
Reply With Quote