Irish budget deficit largest in European Union
It has been revealed that the Irish budget deficit last year was the largest in the European Union standing at 14.3% of gross domestic product. While the initial figure of 11.8% was revised higher due to a change in the treatment of the EUR4 billion aid given to Anglo Irish Bank, there is no doubt that the finances of Ireland are in a mess.
Despite the fact that Ireland has a larger budget deficit than Greece, it is the Greek economy which is currently taking centre stage although many believe that the longer the Greek debacle carries on the more chance that Ireland will need financial assistance from outside parties. Whether this is next week, next month or further down the line remains to be seen but fundamental changes are required within the Irish government and quickly.
In many ways the short-term future of economies such as Ireland and Spain hinge on the Greek financial saga which looks likely to carry on for at least another three weeks. The longer the situation drags on the more unforgiving investment and debt markets will be in Europe and the more expensive debt will become for countries such as Ireland and Spain.
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