European disunion?

MACROECONOMIC FOCUS

F&C's Ted Scott says Ireland's bailout could have major repercussions on other peripheral countries if it proves ineffective.

Last month, the Irish government officially asked the EU for a financial assistance following weeks of turbulence and speculation. Although not unexpected, it represented a dramatic U-turn by the Fianna Fail government, led by prime minister Brian Cowen, who had repeatedly denied Ireland needed external aid. Ultimately, a bailout was forced on the government due to a sharp loss of confidence in its ailing banking sector, which was rapidly seeing deposits withdrawn. The broad principles of the bailout are it will be a three-year loan package to be financed by a combination of the Europ...