The accouncement this week that the Irish government had rejected it was in talks with the EU over the possibility of a 'Greek-style' bailout has highlighted the problems of the current economic climate.It is rather worrying that the EU President Herman Van Rompuy has admitted that if the Euro fails then so will the EU. When the major nations of Europe ditched their respective currencies just under a decade ago, it was hailed as a new dawn for the continent. However, I remember even back then hearing my father, uncle and great uncle discussing the merits of a unified currency and how, in their opinion Europe would lose its financial clout as a result. How right they have been proved.
Many financial commentators predicted the move away from Europe and east to the developing economic powerhouses of China, Korea and Japan and with the decline of the Euro it appears that the smaller economies like Ireland and Portugal will be hit hardest. The Irish insist they don't need a bailout: their plan to make £13bn of savings by 2014 appears to have smoothed over the cracks. There is a danger though that the European Central Bank could withdraw their financial support and leave Ireland in the financial wilderness.
Sitting pretty in the UK with the happy sound of pounds sterling jangling in my pocket, is this now the perfect example of why Britain should never join the Euro...
(Picture: http://www.etftrends.com/)
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