Speculation is mounting that Greece will quit the Euro and return to the Drachma – prompting fears that other weak European countries such as Ireland could be forced to leave the Eurozone.
The failure to elect a government in Greece has only added weight to the theory that the crippled Greek economy will force the country to quit the Euro-zone.
European shares and the Euro have fallen in value in early trade on the markets on Tuesday as analysts react to the latest setback in Greece.
As Ireland prepares for the referendum on the European fiscal treaty, some pundits have predicted that the country will be forced to revert to the Punt in the wake of a No vote and the withdrawal of support from Europe.
However, Eurogroup head Jean-Claude Juncker has described the speculation about a Greek exit as ‘propaganda’ and ‘nonsense’.
“I don’t envisage, not even for one second, Greece leaving,” Juncker told reporters after a meeting of Eurozone finance ministers in Brussels.
“The 17 euro zone partners have unanimously affirmed their unshakeable desire to keep Athens in the Euro during our talks. This is nonsense, this is propaganda.”
However, Austrian finance minister Maria Fekter has claimed that Greece will have to leave the Euro zone AND the European Union itself.
The Euro fell to a four month low of $1.2845 on Tuesday with analysts predicting it could hit the 2012 low of $1.2623 in coming weeks and some forecasting a break toward $1.20.
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Switch to the desktop site to post a comment.Pittsburghkid | May 19, 2012, 03:14 PM EDT
The Irish traded British Master for EU Masters. Ireland should become a Tax Haven for the wealthy.
allan07 | May 18, 2012, 03:12 PM EDT
@Bythebay, @sirpeter and @Irelandnorth I know you have probably have forgotten my wise words. "The Euro is a sinking ship and I am afraid its holed and going to the bottom of the ocean like titantic". I stated comments like these months ago and indeed years ago on many sites but you fools all called me Stupid, unwise and defended the Euro for all its obvious failures. Some called me a hun and a Orange b****** even a brit. I did say it would crash the end of this year or early next. It looks like sooner rather than later. The Republic of Ireland will go the way Greece will go. Down the pan. Its economy is unbalanced, too small to withstand the financial markets and borrowing costs will rise. Just as they are now in Spain. So after Greece its probably Spain, followed by Portugal and then Ireland. One will crash after the next just like a deck of cards if you like. Britain got its fingers burnt when we tried to follow the German mark in 1990. A common currency for all the European states is not possible. The ROI cannot now be upset as it voted to accept the Lisbon Treaty (after minor changes on abortion!). How stupid was that? Abortion? What has that got to do with economics? Nothing! The Republic of Ireland agreed to accept it on abortion changes. Thats the dumbness thing I have never heard. How stupid can you lot be? Supported by FF/FG/Labour/Greens and wait for it SINN FEIN. What does Gerry Adams know about economics. Like I have said on many occasions - nothing. Even absolutely nothing. He is the Osama Bin Laden of Irish Politics. A fool and a dunce (1st class).
BrianO | May 16, 2012, 05:34 PM EDT
Texas notched one of the biggest increases in size in a half-century, surpassing $1 trillion in annual economic output. The state gained nearly a full percentage point in its share of the U.S. economy during the decade, reaching 8.3% in 2010.**the usa today******Besides that they are a leader in high tech jobs with companies like Dell and Texas instruments. I don't that much about texas as I should, being an east coaster but with a growing economy and a lot of high tech jobs without a state income tax, go figure.
Bythebay | May 16, 2012, 12:38 PM EDT
The US economy is showing distress at economic news from Europe. Tighten your belts mates, Greece's economic woes won't help you either!
Bythebay | May 16, 2012, 12:33 PM EDT
Countries can leave the Euro currency and remain part of the European Union. Ireland has survived alot worse than the potential of an EU country going bust. It's the Germans who have far more to lose should the European Union go under, which it won't.
lokionline | May 16, 2012, 12:21 PM EDT
The Scandinavian countries plus the UK, Ireland and Iceland and perhaps the Baltic states make a far more workable and like minded group of economies. A new trading and monetary group formed from these would make more for sense for Ireland and these countries.
EphraimKibbey | May 16, 2012, 11:28 AM EDT
Thanks IrelandNorth! BrianO - actually the people of Texas are not doing well at all. The oil industry and people in it are doing OK but most of the other new jobs are minimum wage or part-time. Since Texans pay no state income taxes, the federal government has to pick up most of the cost of social services. Rick Perry's recent problems with Planned Parenthood lost the federal funding for it sending poor women in the state without medical care. The educational problems are rampant in Texas. The recent multiyear drought has left its agriculture in shambles. Of course, the rich in Texas ARE doing quite well - they always make out quite well where ever they are. Rick Perry's Texans want it both ways. They want the benefits of Union with none of the responsibilities.
BrianO | May 16, 2012, 10:33 AM EDT
Texas is doing quite well these days. The upside of union is balanced with the responsibilities of the union. As stated by IrelandNorth "Common currency equals less political sovereignty", since Ireland is a smaller player in the union they have even less political sovereignty, it's never easy being told what to do, it is the price you pay for giving up control.
IrelandNorth | May 16, 2012, 08:12 AM EDT
There's a difference between being in the European Union (EU) proper and being in the common currency (Euro) zone. (It's a bit like first, second and third degree Freemasonry!) Many of the accession (former Soviet Union eastern European) states are now in the EU, but not in the Euro common currency zone. It's ultimately a macro-economic balance sheet decision. Like Northern Ireland (NI) within the United Kingdom (UK), or the rest of Ireland in the EU, the question is whether your state is a net beneficiary of British or Euro-Federalism or not? Common currency equals less political sovereignty. The UK is in the EU whilst retaining it's economic sovereignty - the purest form of sovereignty. There's an argument for Ireland as an island like Great Britian doing likewise, i.e. being in a two-track Europe. Geography predicates politics! The land that gave us the political philosopher Democritus - and his paradigm of rule by the majority, is being assailed by the plutocrats of the International Monetary Fund (IMF) and European Central Bank (ECB). The corporate loansharking barbarians are at the gates of the city of Athens. If it falls, Dublin and Ireland will be the next to fall to the Mongol hordes of the IMF/ECB! Guard your electoral franchise well, fellow Citizens of the Republic, or they'll have you breaking rocks in the quarrys of Golgotha!
LoyalCitizen | May 16, 2012, 03:29 AM EDT
@sirpeter: Still as dumb as ever...........@Murph46: We got so smart over night because we stopped listening to corrupt, retarded, pretentious American Corporations and there traitorous supporters in Dail Eireann.
EphraimKibbey | May 16, 2012, 12:09 AM EDT
Thanks sirpeter!
sirpeter | May 15, 2012, 08:50 PM EDT
Bythebay & LoyalCitizen.Are ye going to answer Murph46?
Murph46 | May 15, 2012, 08:04 PM EDT
I told you this twice yesterday,but no one had any answers,how did you eejits get so smart overnite?
sirpeter | May 15, 2012, 07:37 PM EDT
@EphraimKibbey.Chaos.Greek banks would go bust.Greek companies would go bust.Unemployment would go up.The new drachma would be devalued by at least 50%,causing inflation.Food and energy prices would go through the roof.It would be an explosive cocktail.In one shot,a Greek exit could undo a large part of good work in Ireland and Portugal.You would see cascading bank defaults in Greece and everybody would take money out of Portuguese and Spanish banks.Political contagion and unrest.We have seen four elections in two weeks.In Greece,France,Italy and Germany.Contagion and panic is the big problem as money takes flight and you could have a run on banks.Spain is in big trouble and has a huge economy.To big to bail out.Civil unrest and riots as savings of the middle class lose 50% of their value.It could end very nasty all around.
Bythebay | May 15, 2012, 06:39 PM EDT
EphraimKibbey, I realize those in the US often need very simplistic explanations of complex subjects however you need to go to finaicial sources for detailed information about the European Union and financial impacts to it. And no, Texas and Greece aren't comparable at all although that analogy is quite amusing!
Bythebay | May 15, 2012, 06:21 PM EDT
ancavker, how does leaving the Euro require that?
Bythebay | May 15, 2012, 06:13 PM EDT
LoyalCitizen, the statement was about Ireland being in the Euro for 25 years, the Euro is the Euro currency mate.
EphraimKibbey | May 15, 2012, 04:26 PM EDT
OK, I need some help understanding this situation in Europe. In the US, Gov. Perry kept talking about the State of Texas seceding from the Union. People in the other states said "How soon can you leave?" as Texas takes way more in Federal government handouts than it contributes in taxes. If Greece is in such a bad state financially, why would the Eurozone not be better off if they left and Greece worse off for leaving the Eurozone's protection? What are the pros and cons for Ireland? Sorry, I'm just a poorly informed Yank!
ancavker | May 15, 2012, 04:03 PM EDT
So Ireland levaes the Euro, than what? It is time to start over from scratch, and rebuild the entire political, economic, and social structure of the country.
LoyalCitizen | May 15, 2012, 03:57 PM EDT
@BytheBay: Ireland has been in Europe for decades and the planning to create the Euro was a long lengthy process.........Its more about the waste of time that Irish Politicians forced upon the people including the Euro for decades.
Bythebay | May 15, 2012, 02:56 PM EDT
Ireland hasn't been in the Euro for 25 years.
LoyalCitizen | May 15, 2012, 02:26 PM EDT
Well said Portia777............If Ireland exits from the Euro then Irish Politicians got it wrong for 25 years or more and should be dealt with as a consequence.
Portia777 | May 15, 2012, 11:19 AM EDT
Excellent news. The sooner we leave the better for us all.