Euro problems for Ireland

1 Euro bought 90 p sterling last week

Greece offered bond yield of 6.3% on global markets last week. Just work out our problems if we have to do the same.

The IMF would charge them 3.25% for same money so euro is in trouble. My belief is that the eurozone will fracture and that Greece will be forced out first with maybe Ireland or Spain also.

BNP Paribas predicts that £1 sterling will slump to = €1 before the year ends.

The UK budget deficit is 13% of GDP – disaster in the medium term

UK growth was 0.3% in Q4 of 2009

The bank of England put 3200 billion into the UK economy in loads (quantitative easing) last year.

UK inflation was 3.5% in January.

Watch the huge spending cuts in the UK after the UK General Election.

The UK is still our biggest export market and this will prolong our struggle to recover.

(PS Fogra – Gerry take your seat in Westminster and negotiate money for NORNIRON)

The European Central Bank rate is unlikely to rise this year especially if the value of the Euro rises and the central economies in France and Germany stay flat.

So tracker mortgages in Ireland will stay the same. At least that is some little good news.