Euro under siege as Portugal hits panic button

[-:Undertaker:-]

http://www.telegraph.co.uk/news/worl...ml#dsq-content

Euro under siege as Ireland attempts to secure short term loans, Greece uncovers more problems and Portugal prepares to go under.. next up - Spain!


'If the euro fails, then Europe fails,' warned the German Chancellor Angela Merkel last night

Portugal became the latest European nation to suggest it was on the brink of seeking help from Brussels after Ireland confirmed it had begun preliminary talks over its debt problems. Greece also disclosed yesterday that its economic problems are even worse than previously thought. Last night, the German Chancellor Angela Merkel raised the spectre of the euro collapsing as she warned: “If the euro fails, then Europe fails.” European finance ministers will meet in Brussels tomorrow to begin discussions over a new European stability plan that is expected to lead to billions of pounds offered to Ireland, Portugal and possibly even Spain.

David Cameron said he was thankful that Britain had not joined the euro, but indicated his displeasure that taxpayers in this country faced a £7 billion liability in any bail-out package. The veteran Conservative MP Peter Tapsell warned that the “potential knock-on effect” of the Irish crisis “could pose as great a threat to the world economy as did Lehman Brothers, AIG and Goldman Sachs in September 2008”. Ireland has resisted growing international pressure to accept EU financial assistance amid concerns that this would lead to a surrender of political and economic sovereignty. However, the German government is expected to signal today that Ireland may have to accept a £77 billion bail-out, along with a loss of economic and political independence, as the price of preserving the euro. Mrs Merkel said the single currency was “the glue that holds Europe together”.

Her words came as fellow eurozone members Portugal and Spain rounded on Ireland. They fear that international concerns over the euro will lead to so-called market contagion spreading to them. Fernando Teixeira dos Santos, the Portuguese finance minister, said: “There is a risk of contagion. The risk is high because we are not facing only a national problem. It is the problems of Greece, Portugal and Ireland. This has to do with the eurozone and the stability of the eurozone, and that is why contagion in this framework is more likely.” Mr Teixeira dos Santos added: “I would not want to lecture the Irish government on that. I want to believe they will decide to do what is most appropriate together for Ireland and the euro. I want to believe they have the vision to take the right decision.” He later sought to clarify his comments, insisting that Portugal was not preparing to seek assistance.

Greece had earlier added to the growing uncertainty when it said it would breach the conditions for the bail-out it was granted by the EU earlier in the year. The Greek government said its debt problem was much worse than previous dire forecasts. Eurostat, the EU statistics agency, said Greece’s 2009 budget deficit reached 15.4 per cent of gross domestic product, significantly above its previous figure of 13.6 per cent. George Papandreou, the Greek prime minister, said new European-wide taxes might now be needed to fund bail-outs. “We need a mechanism which can be funded through different forms and different ways,” he said. “My proposal is that taxes such as a financial tax or carbon dioxide taxes could be important revenues and resources for funding such a mechanism."

Fantastic news, although its sad that its ended like this with chronic unemployment across Europe, dire economic growth and a bleak short-term future, the sooner it [the EU project] collapses on itself (as it will, especially for the PIGS as they are totally unsuited to this Euro which is just an ugly pale blue shadow-Deutshmark in itself) then the better for the future. I remember only a few years ago even on this forum, euro-supporters and politicians told us how the British Pound Sterling didn't have a future and that Britain was just some little puny island off the coast of the mighty Europe - how things change, not that it was true in the first place as the entire currency was a joke from the start.

Nothing would give me more glee to see the likes of the greedy Kinnocks, Herman Van Rompuy and Cathy Ashton all loose their jobs as their terrible attempt to force the European nations into one via stealth falls flat on its face - the clever but odious Jean Monnet must be rolling in his grave, good!

We for sure haven't seen the last of the financial crisis, maybe the worst is still to come.

Thoughts, anyone from Ireland have any input in particular?

[Conservative,]

Good the euro was and is such a pointless currency.

[GommeInc]

*damn Habbox died again *

Is it me or does it look like Angela's mouth has been photoshopped black?

Back on topic:

It's not necessarily good news, it's pretty important really. It was a matter of time the EU was going to cause more problems - most of the planet is out of recession yet as per usual the EU isn't providing the goods. The EU should be providing social and economic stability and security, yet all this money being pumped in isn't proving to solve anything. Yes, the EU pays for random projects, but they usually only cost in the double figures of millions, yet many put in triple figured millions. It's all give and no return, when if anything the EU should be letting countries have stability.

[Eoin247]

I had relatives from allover the world ringing us in the past few weeks telling us about the coverage we've been getting outside. The situation just seems to deteriorate all the time.

Yes this is a pretty bad situation for Ireland, when i graduate from college i will probably have to emigrate for work even then. However if the euro collpases this isn't good news for anybody in the EU.

[alexxxxx]

http://www.telegraph.co.uk/news/worl...ml#dsq-content

Euro under siege as Ireland attempts to secure short term loans, Greece uncovers more problems and Portugal prepares to go under.. next up - Spain!


'If the euro fails, then Europe fails,' warned the German Chancellor Angela Merkel last night

Fantastic news, although its sad that its ended like this with chronic unemployment across Europe, dire economic growth and a bleak short-term future, the sooner it [the EU project] collapses on itself (as it will, especially for the PIGS as they are totally unsuited to this Euro which is just an ugly pale blue shadow-Deutshmark in itself) then the better for the future. I remember only a few years ago even on this forum, euro-supporters and politicians told us how the British Pound Sterling didn't have a future and that Britain was just some little puny island off the coast of the mighty Europe - how things change, not that it was true in the first place as the entire currency was a joke from the start.

Nothing would give me more glee to see the likes of the greedy Kinnocks, Herman Van Rompuy and Cathy Ashton all loose their jobs as their terrible attempt to force the European nations into one via stealth falls flat on its face - the clever but odious Jean Monnet must be rolling in his grave, good!

We for sure haven't seen the last of the financial crisis, maybe the worst is still to come.

Thoughts, anyone from Ireland have any input in particular?

lmao this post just made me laugh so much.

this isn't about hating the EU, this is just about hating other countries, you actually WANT economic failure and hardship on millions of people for your pathetic political views and british nationalism.

the EU will not fail, the euro will not fail.

[wixard]

if spain goes then we're ******, it'll be way too expensive to save

[Jordy]

if spain goes then we're ******, it'll be way too expensive to save

Very true, although in recent months they seem to have gone quiet in comparison to Greece, Portugal and Ireland so who knows. I honestly don't know how the Germans put up with bailing everyone out, it really baffles me but there we are. If it collapses then so be it, I can't say I'll be devastated as it's slightly inevitable and everyone will learn the lessons of why you can't have multiple economies using one currency.

[Technologic]

If the euro fails we are all ******

[Jordy]

If the euro fails we are all ******

For the short-term most definitely, but in the long term, probably not in my opinion.

[-:Undertaker:-]

More on this story; http://www.dailymail.co.uk/news/arti...an-Rompuy.html

lmao this post just made me laugh so much.

this isn't about hating the EU, this is just about hating other countries, you actually WANT economic failure and hardship on millions of people for your pathetic political views and british nationalism.

the EU will not fail, the euro will not fail.

Its not a case of wanting these countries to fail as they have already done so with a large part of that down to their currency, the dreadful Euro. The problem lies with their currency with its aim and what its there designed to do - it was always suppoosed to be a large step into the backoor of a federal Europe, just today the EU President Van Rompuy warned today ‘We must all work together in order to survive with the eurozone, because if we do not survive with the eurozone, we will not survive with the European Union.’

The sooner the European Union and its currency are gone, the faster the PIGS can get back on track.