Why the UK is really helping Ireland

 

Image courtesy- http://www.photobucket.com User-axelXroxas14

Helping Ireland out of its financial crisis is like “helping a friend in need” said Chancellor George Osborne.

A big step for a man who introduced the largest spending cuts to the UK for the first time in decades in 2010. What suddenly made him decide that the time is right for the UK to bailout Ireland with a huge sum of £7 billion? It is definitely more than just friendship.

British taxpayers may be concerned that this friendship is indeed a very expensive one but what we don’t realise is that if Ireland isn’t helped; Britain stands to lose a lot. In the time of austerity UK is being generous.

“Clearly, we have a very open economy and therefore stability in other countries – or instability in other countries – has an impact in the UK,’ A Downing street official told the Daily Mail today.

It was his subtle way of saying; if we don’t help Ireland we don’t help ourselves.

Britain exports a large amount to Ireland making it it’s fifth biggest market while The Royal Bank of Scotland and Lloyds, UK’s partly state owned banks are amongst the biggest lenders to firms and consumers in Ireland.

So if you are among the few who think that the UK should steer clear of Ireland’s crisis, think again.

George Osborne’s and David Cameron’s decision to help Ireland out of its financial crisis has led to severe criticism from a number of groups including Conservative Party MP’s as well as the Adam Smith institute.

Their arguments are interesting as they make you question the true motives of the British government.

“Bailing out Ireland now would undo much of the benefits that Britain has yielded from keeping the pound and would make a mockery of the spending cuts announced by the coalition last month.” Sam Bowman, the head of research at the Adam Smith institute told the Daily Mail.

He went on to say that the proposed bail out to help Ireland would be a bad idea for the UK as it put the interests of the European Union before those of Ireland.

Ireland has been suffering from a financial crisis since 2008 and it has came to an ugly end with Ireland asking for a huge international bailout. It comes close on the heels of Greece’s financial crisis and there are fears that Spain and Portugal would be the next in line for this fate.

This is exactly why it makes sense for Britain to help keep Ireland afloat, as they are afraid that this crisis will pull the entire European union back into depression, something that the countries like UK have worked very hard to grow out of. Politics, economy and stability in all countries are interlinked and if they don’t help each other there is no chance for any to survive.

It is about putting the European union before individual countries because ultimately they depend on each other for survival. This is why UK is really helping Ireland.

Reference http://www.guardian.co.uk http://www.reuters.com http://www.dailymail.co.uk

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Published in: on November 22, 2010 at 7:27 pm  Leave a Comment  
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