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The Irish Government will use this opportunity to strive to "lobbying" the EU official Dre'Mont Jones Jersey , who believe they have the ability to restore the national finances in order to avoid a Greek-style rescue package. The background is the recent record highs of Ireland Treasury yields, the market in need of international assistance to the country and the debt crisis may break out again in Europe concerns rose sharply.
As investors worried about the Irish can not effectively manage its financial problems, the Irish 10-year Treasury yields on Thursday the 8th day continuous rise to 7.7%, the euro once again set a record since the founding; and Germany between the yields of similar spread is widened to a record high of 520 basis points, has been greatly over Greece to the European Union in April this year Drew Lock Jersey , the level before seeking help.
At the same time, Portugal, Greece, Spain, borrowing costs have also showed varying degrees of rise. So the market worried about rising borrowing costs will continue to make Ireland and other countries continued to increase default risk of bonds Dalton Risner Jersey , thus becoming another Boou debt crisis caused the fuse.
The face of rising borrowing costs continued to pressure, 4 on the evening before the Irish Finance Minister Lenihanti announced a release scheduled for mid-budget reduction plan in an attempt to reassure investors. Under the scheme, the Irish government next year will increase by 60 billion euros of savings and tax revenue, accounting for 3.6% of its GDP; in the next three years, plans to cut spending nine billion euros Noah Fant Jersey , the goal is in the budget deficit in the GDP by 2014 in the proportion from the current 12% to 3%. In fact, if the calculation of the cost of bank bailouts go, Ireland this year's deficit will reach 32% of GDP. Lenihan will also be published by 7th of next month its 2011 Budget.
The budget reduction plan can convince investors that the Irish government have the ability to restore the national finances in order, will be to determine whether they need to seek international assistance to the key factors. According to reports, although Ireland currently has cash reserves of 20 billion euros the year without funding guarantees Royce Freeman Jersey , but these reserves can only last until mid-2011, will not succeed if the Irish funding from the international market, it will have the same as Greece apply for international assistance. However, whether Ireland or Portugal, as the Greek government did not want to seek the European Union and the International Monetary Fund financial support Courtland Sutton Jersey , because the stringent requirements of these institutions will make their own borrowing costs increasing pressure.