Ireland’s recovery is faltering and the country is showing no signs of pulling out of its recession says Wall Street Journal columnist Eamon Quinn.
“There’s no escaping the evidence that the recovery in Ireland is spluttering. Even the great hope that an exports boom would save the country from its worst ever economic slump is withering.’” Quinn wrote in the WSJ.
“While exports are booming, factories supplying the austerity-laden domestic economy are struggling.”said Quinn
“Ireland is still facing an economic and debt crisis of monumental proportions. Irish gross domestic product has slumped by about 15% since it fell into a yawning financial abyss at the end of 2008.
The Irish banking crisis is heading to be among the costliest in the world.”
Quinn says European solutions are ‘underwhelming’
“Prescriptions for the crisis from the European Union and European Central Bank are underwhelming. Treatment consists of more austerity through 2015, even though all the private debt of the private banks will be paid back by Irish citizens.”
Quinn says Ireland has been “ told to lump it.” by Europe.
Quinn says the only solution may be to M burn bondholders “Much more burden sharing of its banking debts and more radical EU measures are needed to solve Ireland’s debt crisis.” he concludes.