Local time on February 26 night (early morning GMT 27 February), the Irish House of Representatives election results released the preliminary vote count, polling shows that the opposition United Party has become the largest party in parliament. Kenny, Fine Gael leader said that day in Dublin, he will lead the new government meet the challenge to rebuild the reputation of Ireland.
analysts believe that the people to help change the mentality of a unified party's favor. Most of the Irish election results reflected the discontent of the people on the Republican party and disappointment, hope for the party in power, so that the former
mournful
space than Republicans exultant Unity Party, the Republican former ruling party quietly accepted only the first time since 1932, the worst defeat since coming to power. Local media reported the preliminary results showed that United Party won 36.1% of the vote, the highest number of votes each political party candidates. Republican vote was only 17%.
from the 90s of last century Ireland to attract foreign investment through low tax rates, became the world's one of the highest economic growth rate, known as the But now, the Western European countries since the end of last year fall into the quagmire of debt crisis is difficult to extricate themselves and the unemployment rate soared. To this end, Cowen and the Government had to accept International Monetary Fund, the EU 85 billion euros rescue package, the average interest rate of 5.8%, while Greece received assistance rate was 5.2%. In addition, in exchange for the European Union and the International Monetary Fund assistance, Cowen government was forced to implement austerity program in the next 4 years, 15 billion euros deficit reduction. A lot of debt left behind huge liabilities for taxpayers, take a generation to repay, it was precisely because of these conditions led to differences between the Irish political parties, the ruling coalition government along with a crisis, was forced to dissolve parliament ahead of schedule election.
Unity Party Face Challenges
winner in that occasion, Kenny said confidently, program, its future economic policy are the following: a year in the next 5 years to create 20,000 jobs; reform the current system of national health services, the introduction of the Dutch national health insurance model; control budget deficits, cuts in public expenditure, giving priority to reducing waste, not to increase the tax burden on taxpayers; building small and efficient government, streamline the large public sector, improve the teachers, doctors, police and other public officials of the quality, slashing red tape; will reduce the number of 35% of the House and Senate members, and through referendum abolished the Senate, while the bus system reform of government departments.
In addition, Kenny said, may be associated with the EU in the near future members of a pension to do some additional discussion of the details of the terms, and after the establishment of this new government as the first thing. When asked whether the resulting possibility of some of Ireland's debt default, Kenny said he hopes to discuss
the unity of the party did not receive an absolute majority of votes, the ruling can not be independent. Guess the media and public opinion, unity coalition with the Labor Party the party will be. Although the new coalition government could have brought some new ideas and change the Irish, but also will face many difficulties and challenges. The first challenge is to pack up the former government left behind Republican governance has extensive experience difficult problems the government, opposition for 14 years and Labour Party unity is difficult to resolve in a short time. Also, if you want to rebuild the financial system Unionist Party, the cost is enormous. According to IMF data, in the past 3 years, the Irish gross domestic product (GDP) accumulated 11% decline, the unemployment rate to 4.6% from 2007 to 2010 soared 13.3%, total government debt to GDP ratio rose from 25% to 95% by 2014, the proportion may rise to 123%. According to the Irish broker Goodbody estimates that if the Irish government restructure the financial system, the direct costs of up to about 36% of GDP. In this regard, many voters have said that whoever comes to power, will face a cupboard on the government's ability to govern will be a tremendous challenge.
Ireland is the way out
This leads to over who should take responsibility for the financial problems. This is the problem of the Irish general election, then it should be all the European countries in question.
as Philip Lane of Trinity College stated: Ireland has created a true economic miracle - in 1994 and 2000 output, employment and productivity growth. If it were not joining the euro, this miracle might not continue. However, increased interest rates driven by the credit risk of the real estate bubble. soared to 230% in 2008. Foreign lending institutions for financing this boom has played a huge role: domestic banks net foreign debt-GDP ratio from 20% in 2003, rising to over 70% in early 2008.
the global financial crisis, capital inflows stop. Panic in the Irish Government under the September 2008 to provide a guarantee for the bank debt. Because of the economic recession, coupled with had to bail out banks, the Irish government's financial costs, the initial financial crisis has finally evolved into the public debt crisis. This is not the first time, the financial industry out of control causing injury to the Government, it will not be the last.
How far should the crisis be? The key point is that this is not a crisis, but three crises: economic collapse, crumbling financial system and financial disaster. Without causing financial collapse in the event of default and sovereign control of such a crisis is beyond the capabilities of Ireland. The State Bank has become too dependent on European Central Bank, while the Irish government was shut out the private market, spreads on German government bonds reached 600 basis points.
financing if not the European Central Bank, these banks will be bankrupt. If there is no external financing, the Irish government will default. The new government prepared to do? Even excluding recapitalization of banks last year (before interest) of the basic fiscal deficit close to 10% of GDP. In accordance with the IMF's plan, by 2015, Ireland to change this situation, to achieve basic fiscal surplus accounted for 1.5% of GDP. Given that it can not enter the private market, Ireland is no official assistance must be the case more quickly to eliminate the budget deficit. Similarly, in any plausible assumptions, the Irish's outstanding debt will be huge, Ireland is bound to the implementation of decades of fiscal austerity.
(Department of the British
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