Eire expanded to a great extent from handouts from the EU, this greatly kickstarted the economy,most of that funding has now ended and the irish economy has been left to its own devices at the worst possible time.
Yes FE you are right but how can a country the size of Ireland be anything else? Have a look at other countries e.g. the US and the UK. They are both rich in diversity but are also heading into recession. I therefore do not agree that the key to economic survival is diversity. The key is a healthy global economy because the bottom line is every country needs trading partners. It's not much use having a very diverse economy if you have no customers.
Not everywhere in Ireland can be suffering as my wife has had at least 4 phone calls this past week asking her to go there to work (she is from Dublin originally. Each time she says no the anti (€)is increased.
The trouble with the UK economy is that our decade of growth has been fuelled by consumer debt and inflated house prices and now the bubble has burst.
What doesn't help is that the government already has a large fiscal deficit and we haven't officially entered recession yet as this is defined as 2 consecutive quarters of negative growth.
This quarter GDP fell by 0.5% but the previous quarter recorded that the economy never grew but it didn't shrink either so it doesn't count.
lofty29 "Eire expanded to a great extent from handouts from the EU, this greatly kickstarted the economy,most of that funding has now ended" ------------------------------------------------ I'm not surprised as the EU must be furious with them for killing off the Lisbon Treaty!
CurlyWhirly The funding was coming to an end before the treaty vote, there was a suggestion that with the last expansion that Eire would end up being a contributor instead of a recipient of EU funds. I tend to use EIRE so as to avoid any confusion with NI.