iReLAnD & ThE eCoNoMiQuE CriSis

 [The first class of EU institutions has been one of the most interesting class of all the semester. The teacher begun class by telling us "Well, without the EU, you wouldn't be sat where you are sitting right now, I wouldn't be there teaching you, GMIT wouldn't existed at all". In fact, GMIT has been financed by the EU. So far, she seemed to thanks EU as if it was something very benefic for Ireland. But her point view changed quickly when she started to talk about Irish economic crisis…]

Explications...:
As part of the EU Institutions module and the Bachelor of Business Year 2 Semester 4, we had to do an assignment on the challenges facing Ireland within the European Union and to discuss recommendations to deal with these challenges. Most of these challenges are related to the economic crisis which affected a lot the Irish economy.

Due to the banking crisis and the current economic climate, banks have no money to lend. The biggest challenge would be the EU/IMF Bailout for Ireland having to pay back the International Monetary Fund (IMF). Ireland is unlucky in that the International Monetary Fund (IMF) is providing high rates to Ireland in the banking bailout. As from 2012, Ireland will be a contributor. 

That was abundantly criticized on the island, which has difficulty in accepting an interest rate considered as "punitive" and a severe draining in the reserve fund of the pensions, the last savings of a ruined country.

Ireland has to return the Irish public deficit to 3 % of the GDP (Gross Domestic Product), as require the EU. Indeed, this last one flew away in 32 % of the GDP, because of the 50 billion euro which the Irish state had to inject in its banks to avoid them from the bankruptcy. Ireland has to prove its capacity to control its financial spending. To succeed, Irish state must both increase its revenue and reduce its spending.

Principals measures of Irish austerity plan :

#1  Ireland presents four-year austerity plan outlining $20bn in savings.

#2  It is a requirement towards securing a bailout package from the European Union and the IMF.

#3  Sales tax will be raised to 23 per cent from 21 per cent by 2014, but the 12.5-per cent corporation tax rate - a key attraction for foreign companies to invest in Ireland - will be maintained.

#4  The government says it expects unemployment to be brought under control
and to drop below 10 per cent by 2014, from its current level of over 13 per cent.

 #5  But the minimum wage will be cut by one Euro an hour to 7.65 Euros an hour. 

ð    What strikes me the most is the fact that Irish don't want IMF and EU aids! In fact most of them refuse to be dominated by any countries because they have so bad memories with English. "Never again." 
By the way, the governement agreed to these aids. However, Irish are giving a hard time to the governement and especially to their last Prime Minister during february.