# reasons for 5.8%



## dockingtrade (29 Nov 2010)

Why the 5.8%, surely the eu know that this will more than likely lead to a default as we'll have little or know growth and the repayments just wont be affordable and the reserves will be gone. The EU wont want a default because of the knock on hysterical effect around europe.
Or is this a way for the EU to force the govt to impose the 20-30% cuts in SW and the PS as the 5.8% will give them no option but to cut to this extent.


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## Stephanno (29 Nov 2010)

Or maybe to force the govt to increase the Corporate tax?


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## dockingtrade (29 Nov 2010)

Stephanno said:


> Or maybe to force the govt to increase the Corporate tax?


 
yes... its like they're not going to bail us because we pay ourselves more than them and also taking potential investment and jobs from them.
At 5.8% we're going to have to give up those "perks" and the whole eu knows it especially the big boys. The uk have a big problem with the corp tax and the germans dont like our pay rates in the PS.


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## jpd (30 Nov 2010)

> ... and the germans dont like our pay rates in the PS.



I don't think they are alone in this


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## sonandheir (2 Dec 2010)

If we are putting in 17.5 billion that means the funds from EU / IMF are 67.5 billion. I think that's why they are stressing 'average' rate. Are we going to pay interest on the money we lend to ourselves? If not then the rate is more like 7.3% on the 67.5 billion. I seen a calculation like this in the Irish times other day and was wondering if this is correct?


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