Email
Password
Remember meForgot password?
    Log in with Twitter

article imageGreece, Ireland may leave Euro by end of 2010

By Andrew Moran     Dec 14, 2009 in Business
The pending financial crisis persists, creating uncertainty and speculation such as the recent analysis that Greece and Ireland will leave the Euro.
With the global economic crisis continuing, many nations are feeling the pain, some more so than others. Nations in Europe, such as Greece and Ireland, are suffering the effects of bad economy and monetary policies. This is why financial analysts are expecting Greece and Ireland to leave the Euro by the end of next year, according to Bloomberg News.
Money News reports that Ireland’s government has said that they expect their economy to shrink by 7.5 per cent this year and at least 1.25 per cent next year. The Irish housing market has also collapsed with a banking system at the brink of complete failure. While the Greek economy contracted 1.7 per cent in the third quarter and maintain a budget deficit that totals 12.7 per cent of the Gross Domestic Product.
Steve Barrow, Standard Bank analyst, said, “Countries like Ireland and Greece may not be able to grow out of the current crisis. With interest-rate cuts, exchange-rate depreciation and significant fiscal support all off limits for these countries, bailouts or even pullouts from EMU (European Monetary Union) may happen next year.”
The American Daily adds that the economic crises in both countries could further financial bailouts and an exit from the Euro. However, the finance ministries in Ireland and Greece have both said that there is no chance either would leave the Euro. The Irish Finance ministry said the reports and suggestions are “uninformed comments” and added “As the Minister for Finance stated nine months ago, it is akin to stating that Texas will leave the dollar.”
Prime Minister of Greece George Papandreou told reporters at a European Union Summit in Brussels that both European Central Bank President Jean-Claude Trichet and Luxembourg Prime Minister Jean-Claude Juncker do not see a possibility of a Greek default and also verified that Greece will not leave the Euro.
Nevertheless, the speculations will continue and economic analysts will persist in their belief Greece and Ireland will leave the Euro, such as a senior German government official who told Der Spiegel, “The Greek problem will be an acid test for the currency union.”
More about Greece, Ireland, Euro
More news from
Latest News
Top News