Photo: garryknight on flickr
Ireland is heading for default in June because the country will not be able to raise money on the public debt markets, according to the Economist Intelligence Unit’s Megan Greene.Speaking to the Irish Independent, Greene said the country will have to tap the eurozone support system, the ESF, in June because they are in much worse shape than they realise.
Greene says the country needs to make much more drastic cuts in 2011 and 2011-2015 than advertised. Right now those cuts are to be €6 billion and €15 billion respectively. Greene feels they should be a €9 billion cut first, and €20 billion over the full five years.
She also doubts the GDP projections the country is putting out, and doesn’t expect Ireland to return to growth until 2012.
Ireland has been under pressure all week over its budget and its expanding bailout of Anglo Irish Bank. Unless one of those two issues are solved, either by expanding cuts or cutting the lifeline from the country’s banking sector, expect the pressure to continue unabated.