The European nations almost forced Ireland to accept the bailout package. The question is why? Why the other nations of Europe so much interested in bailing out Ireland from financial bankruptcy?
After the Cabinet of Ireland approved the loan request letter, political uncertainty has gripped the nation as opposition parties have demanded the resignation of the Prime Minister and go for a new mandate of the people. This has weakened the common currency Euro of 16 European nations and has also made the stock market volatile both in USA and also in Europe.
An emergency budget will be passed and IMF has asked Ireland’s opposition party to support that budget. In fact, that is a precondition of IMF bailout offer. German Finance Minister has proposed to cut down a deficit of 15 billion Euros from their budget over the next few years.
The Prime Minister has hinted for an election to be held in January or February and economists are questioning whether they have got the money at all to conduct a general election. The basic question is from where will the money come? All the six major Irish banks have been put up for sale and this is seriously affecting the future of Euro.
If Euro becomes weak against the dollar or the yen, then China and America will definitely get an advantage over it. England Prime Minister has expressed concern that there may be a huge influx of Irish job seekers to different European nations which are already having a high rate of unemployment for their own workforce. Due to a combination of these various reasons, European nations forced Ireland to got for a bailout package.