Is the Irish financial sector falling apart?
News that a number of directors at Irish Life have been forced to fall on their swords after the discovery of a €7 billion loan to Anglo Irish (a bank which is now under Irish government control) has prompted many to question what will happen next in this volatile period for the Irish economy. Much like Gordon Brown, the Irish authorities had initially been praised for their swift action in tackling the banking problems of the country but the situation has now moved on to a far higher level.
Slowly but surely we are seeing confidence in the Irish banking sector seep away and at this moment in time there appears very little that the Irish authorities can do. Their promise to protect funds on deposit within the Irish banking sector was initially well-received but there are concerns, much like the situation in Iceland, that this safety net could prove very expensive and ultimately cause serious damage to the Irish economy.
Ireland was also at the centre of the rejection of the original EU treaty and with EU ministers promising significant funding to help bail out the country many are suggestion that a trade will take place which would see Irish voters go back to the polls and effectively rubber stamp the EU Treaty.
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