Irish authorities forced to redraft budget
The Irish authorities are today staring at a redraft of the country's budget amid signs that the banking sector will need more capital over the next few months. Despite the fact that the Irish authorities have already introduced major austerity measures in the light of the economic collapse over the last two years it seems that more cutbacks will be required and there is concern as to whether the authorities can push through enough cost savings.
Debt markets have pushed the cost of Irish sovereign finance to a record high over the last few days despite the fact that a number of prominent economic parties have stepped forward to suggest that the Irish economy will not need an international bailout. As we have mentioned on numerous occasions, it seems as though the "tail is wagging the dog" with investors in many ways ignoring comments from the authorities, the EU and the IMF and seemingly determined to push the Irish economy over the edge.
It is noticeable that over the last two days the Irish government has used alarmist phrases to focus the mind of investors confirming that a collapse of Anglo Irish bank would put the Irish financial sector on the edge and potentially push the economy into a new recession.
Share this..
Related stories
CBI in renewed call for UK interest rate cuts
In the aftermath of the fall of the famous Lehman Brothers and the immediate affect which it has had on the money markets - not unlike the impact the market felt as the credit crunch began - the CBI has called on the Bank of England to throw caution to the wind and reduce UK interest rates. The confederation believes that unless action is taken before the end of 2008 the UK will encounter a prolo...
Read MoreYet more contradictory news on the UK economy
Monitoring and forecasting the direction of the UK economy has become an art in itself over the last few months with news that advertising budgets increased marginally by 0.5% in the third quarter of 2010. This compares with a decline of 4.6% in the previous quarter and would on the surface appear to indicate that the UK economy has upturned. However, there are short to medium term concerns about...
Read MoreUK trade deficit widens
The UK trade deficit in September widened to £7.2 billion from £6.1 billion the previous month. This has surprised analysts somewhat when you consider the ongoing weakness in the pound and the fact that many people had expected imports to increase dramatically and reduce the trade deficit. However, it looks as though demand for new cars in the UK, as a consequence of the car scrapping scheme, ha...
Read MoreRising inflation predicted by public
Consumers expect living costs to rise still further over the next year, Citigroup has claimed.The bank found that the current average inflation expectation among the general public for 12 months' time stands at 4.6 per cent - an increase over last month's prediction of 4.1 per cent.Moreover, both of these figures are above the latest government inflation benchmark of 3.3 per cent - which itself ex...
Read MoreIs It Really So Grim Up North?
The recent report by a right wing think tank which suggested that those who live in the north of England should relocate down south has created an almighty row. The so called experts in the think tank believe that investment in many areas of the north is a waste of tax payers money and it should be directed at the more vibrant and prosperous areas of southern England. Do they really have a point...
Read More
