The debt crisis continues from one to the next in Europe, it makes the market worry about not only the Ireland financial distress, but also the euro institution. In recent days Irish debt crisis has been an international hot topic, some worries are about Ireland’s own economy and financial problem, but more are distrust of Euro zone and Europe succor institution, meanwhile this situation exposes the weakness of Euro institution.
The core of Ireland’s success is attract foreign direct investment through low tax rate and make herself a European bridgehead for global investment, and then improve the development of real estate and the other industries, I think this is a good national competitive strategy. Therefore, compare with debt crisis, the condition of aid (required Ireland increase tax rate) from EU is the most problem for Ireland government.
No matter what Greece debt crisis, Ireland debt crisis or Portugal, Spain and Italy debt problems are, the root is Euro institution’s own flaw: unified monetary policy with each country acts of its own free. After Greece debt crisis euro zone has done the first step for coordinating financial policy, but this is not enough to solve the problems that has existed a long period.
No comments:
Post a Comment