Greece threatens “our” recovery

“Euro crisis threatens to torpedo our recovery,” leads the Irish Independent, one day after rioting in Athens led to the deaths of three bank employees and as Greek and Irish government bonds fell sharply on international markets. With the Greek crisis now also raising questions about the viability of Eurozone countries Spain and Portugal on international markets, Ireland fears “contamination” spreading to its own shores. “The European Commission yesterday predicted the Irish economy would grow by 3 percent next year,” writes the Dublin daily, “in line with Government forecasts and a 15 percent improvement on its November forecast. That would be almost twice EU average growth and could keep the Government's four-year budgetary plan on track… But all of this could be undermined if the euro crisis is not resolved.” In December 2009, the Irish government passed one of harshest budgets in the history of the state, slashing social welfare provision and public sector pay in order to cut €4 billion of its public deficit, more than 12 percent of GDP.