Ireland is in More Trouble as Euro Bounces Back

Friday April 15, 2011

The two situations couldn’t possibly be more different from each other. While Ireland struggles to keep its head above water with regard to its financial status, the Euro seems to be stronger than ever. How on earth can the European single currency be so strong when there are so many problems within its borders?

Ireland has been in trouble for some time now, but things got even worse recently when Moody’s downgraded the sovereign rating of the country. This means it is perilously close to junk status, which is not good news in any way at all.

But during all of this the Euro has performed well on the currency markets. This is despite the fact that Greece is also in dire straits financially, along with Portugal. Portugal was the latest country to ask for help from the monetary fund after the catastrophic effects of the recession severely battered the country.

So where do things go from here? Will Ireland continue to be in the doldrums as Greece and Portugal are? Will the Euro manage to slide back against various other currencies for a change, instead of being stronger, apparently in the face of adversity? We can only hope for better in the future, although many would like to see the Euro stabilise.

However some are against the Euro and were from day one and they will be hoping that perhaps it will flounder and die in the middle of all this turmoil. Because regardless of how well the Euro might be doing against other major currencies, there is no doubt that the Eurozone as a whole is going through a series of issues at the moment. We can only wait and see whether Ireland’s rating will diminish even further or whether other Eurozone countries suffer from being part of this megazone. Some people will no doubt be glad that they are not part of the Eurozone at the moment, people in countries such as the UK for example. No one would want to be caught up in the drama that is happening there.

 

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