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News Link • Economy - International

Euro exit could cost €45,000 for each family


THE cost of Ireland leaving the euro could be as much as €45,000 per family in the first year, according to research report for clients of giant Swiss investment bank UBS.

The threat of a break-up of the euro mounted last week when the Dutch prime minister, Mark Rutte, and his finance minister, Jan Kees de Jager, dropped a bombshell by suggesting that countries that persistently break eurozone budget rules should be chucked out of the currency. With the latest Greek bailout deal on a knife-edge, the possibility of Greece leaving the euro has increased dramatically in recent weeks.

Analysts believe the departure of Greece would lead to major problems for the other bailed-out countries, Ireland and Portugal, as markets smell blood. Ireland's massive bank debt is like catnip for sharp-suited hedge-fund bosses and institutional investors looking to "short" our bonds.

This could lead to a domino effect, with the weaker countries being forced out the door. Spain, Italy and France would also come under enormous pressure from speculators.


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