Ireland has reported that it expects the cost of cleaning up the Anglo Irish Bank will come to 21% of GDP, and the total cost of the bank bailouts looks as if it will be well over a quarter of Ireland's GDP. German and British banks have each extended credit to Ireland greater than the entire GDP of the country.
The credit markets want proof that Ireland is serious about managing its debts. How much austerity can one country take? Keep watching. And expect talk about defection from the Euro, with all that implies for the EU.
The credit markets want proof that Ireland is serious about managing its debts. How much austerity can one country take? Keep watching. And expect talk about defection from the Euro, with all that implies for the EU.
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