Financial Crisis in Ireland
Ireland’s economy and financial markets are in a deep crisis. In the past days European Union officials have got together to discuss ways of helping Ireland.
For many years Ireland’s economy has been growing. One of the reasons for such amazing growth was the real estate market. However, in the last 2 years prices for land, houses and flats have been sinking constantly . Banks are in trouble because they have lent people too much money. Because most of the country’s banks belong to the state , the Irish government must give them money to save them.
The country faces another big problem: not enough tax income . The economy has slowed down; many people are out of work and consumers do not buy as much as they did years ago.
The Irish government says that it has no money problems and that it does not need extra money at the moment. Financial experts say that Ireland may need another 80 billion Euros to stabilize its finances.
The European Union has offered Ireland financial help but the Irish do not want to accept it. They are proud of their country. Taking money from others would mean that they would become dependent on the European Union. The EU, however , fears that if Ireland does not get help it would weaken the Euro and European economy .
Ireland fears that it must cut government spending radically . Currently , the yearly budget deficit is 12%. Irish officials have promised to cut it down to 3% in the next 4 years. Because of this economy growth will slow down.
Other countries have similar problems. Spain and Portugal may be the next in line to beg for EU money. In the summer the European Union gave Greece billions of Euros to save its banks and finances.
Protesters on the streets of Dublin - William Murphy
- accept = take
- amazing = surprising
- billion = a thousand million
- budget deficit = the government spends more than it has
- constantly = always, the whole time
- consumer = a person who buys things in a shop
- currently = right now, at the moment
- cut = reduce
- dependent = here: they would need the EU
- economy = the system of buying and selling goods in a country; and the banks and money system that a country has.
- flat = apartment
- however = but
- in line = waiting for
- lend – lent = to give someone money that they should pay back later on
- official = a person who is in a high position in an organization
- radically = very much
- real estate = property in the form of land or houses
- similar = almost the same
- stabilize = calm down , to make unchanging
- state = government
- tax income = the money everyone in a country has to pay to the government for their income, services and the goods they buy