Shock And Owe

at

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Ah here.

In response to a call Catherine Murphy, TD calling for support for a European Debt Conference.

Unite Trade Union economist Michael Taft writes:

Of course, this data [above]only goes so far.  There are a number of other factors that determine sustainability – the level of foreign borrowings, exports, current account surplus, high-tech employment and activity.  A high-income country can sustain a high debt level that a low-income country couldn’t.  But at the gross level, we can see that Ireland is a highly indebted country and, within that, carrying the highest level of illegitimate private banking debt.

….So let’s bottom-line this. We are highly indebted with high levels of interest payments. The Government intends to run substantial surpluses to meet those interest payments. At the same time, we are facing into a slew of problems – not least of which is a chronic investment crisis and a massive repair job to a social infrastructure which was pretty anaemic prior to the recession, never mind now. A growing elderly demographic, household debt, continuing high levels of emigration and a deprivation rate of 30 percent: and we intend to run up a surplus of nearly €9 billion in a few years…

Debt? What Debt? (Michael Taft, Notes On The Front)

Who, in other words, gets the best deal from its international lenders, good Ireland or bad Greece? There’s no contest. Last year, Greece paid €8 billion to service debts of €315 billion. Last year too, Ireland paid €7.5 billion to service debts of €214 billion. So it cost us almost as much to service €100 billion less. Why? Well at least in part because, even before Syriza took office, the Greeks didn’t go around telling everyone that their debt is “affordable and repayable”.

Fintan O’Toole: When it comes to Irish debt, the State puts on the rich mouth (Fintan O’Toole, Irish Times)

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20 thoughts on “Shock And Owe

      1. Jock

        21% more like. If it disappeared overnight we’d still be fupped. The rabble would lose their go to bogey man to blame their woes on. The blame lies squarely with them.

  1. More_Bermuda_than_Berlin

    Ah here my eye – would ya not get on message about green shoots, turning coners and other such nonsense?

    You’re wrecking me re-election buzz here with your reality.

    1. Odis

      I figure its probably the three billion Kevin Cardiff never spotted. The reason for his promotion to the European Court of Auditors.

  2. John

    Government net debt is lower as the govt has cash and stakes in the banks to offset their gross debt levels. i think that would bring it below 100%…Yippeee

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