Upcoming EU Events that will Impact on Ireland

Today the German Constitutional will issue a preliminary ruling on the €500bn ESM fund. If the result is positive, it will need the approval of the Bundestag.

Nothing then happens until Spain and Italy formally request a rescue from the EU bailout funds.

There will be no new deal for Ireland until we have closure on these matters.

The negotiations with Spain and Italy will be tough. The Spanish Finance minister Luis de Guindos has told the creditor bloc that the battle for the survival of the euro will take place in Spain. Some people see this as a threat to walk away from the Euro if pushed too far.

If deals are not stuck over the coming months, the outlook for Ireland just becomes that bit harder.

Our Government appears to rely on a positive outcome, and we suspect that they have no alternative plan if the negotiations prove to be futile.

In the long term, this debt problem will, hopefully be solved resulting in debt stabilizing at a high level. This of course means for the participating bailout nation’s years of austerity.

It of course remains debatable even if the plan comes to fruition, it will correct these very complex problems. However, then again, that is another story.