Following on from the thread about what would happen if the Euro collapsed I have a more immediate question;
On balance is the situation in Greece good for Ireland?
It’s a given that a Euro collapse would be a bad thing but at the moment the Greek situation is causing the Euro to weaken and interest rates to stay low.
This is good news for Irish (and EU) exporters and good news for indebted Irish households and businesses. The big concern a few months back was that the rest of the EU would come out of recession quickly and interest rates would start to climb. The current situation means that while economic activity might well increase ECB interest rates should not. It’s on a knife edge but does it suits us that way at the moment?
On balance is the situation in Greece good for Ireland?
It’s a given that a Euro collapse would be a bad thing but at the moment the Greek situation is causing the Euro to weaken and interest rates to stay low.
This is good news for Irish (and EU) exporters and good news for indebted Irish households and businesses. The big concern a few months back was that the rest of the EU would come out of recession quickly and interest rates would start to climb. The current situation means that while economic activity might well increase ECB interest rates should not. It’s on a knife edge but does it suits us that way at the moment?