This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ireland Bailout Ends

The most obvious evidence of renewed Irish confidence is all the "sold" signs suddenly appearing in Dublin, home to nearly a third of the country's 4.6 million residents and the epicenter of a property bubble that burst with disastrous effect in 2008. Property prices had slumped more than 50 percent in the five years since as credit crumbled, banks drowned in toxic assets and hundreds of thousands became trapped in negative equity. The market is finally stirring again.

Ireland still faces a mountain to climb to achieve its key goal of reducing its annual deficit back below 3 percent of gross domestic product, the limit supposed to be observed by all 17 nations using the euro currency.

Ireland recorded a European Union record deficit of 32 percent in 2010, the year that the bill for sustaining the country's six domestic banks grew so large that Ireland's credit ratings crumbled.

But since coming to power in early 2011, Kenny's government has reformed banking regulation, negotiated with the European Union to spread out bank-debt repayments over several decades and imposed tens of billions in annual cuts and new taxes targeting every sector of society.

Must Read: Las Vegas Developer Selling $7.85 Million House for Bitcoin

As part of its reform agenda, EU and IMF chiefs ordered Ireland to impose new charges and limits on the state old-age pension system and on welfare pay for the young. Ireland must also introduce a new property tax in line with international practice. A much-debated water tax is still in the pipeline for next year.

Ireland's major economic think tank, the Economic and Social Research Institute, estimated in a report this week that five straight years of cuts dating to the early days of the 2008 banking crisis have pruned most workers' take-home pay by about 12 percent. Those best off have lost more than 15 percent of their incomes.

Ireland's deficits have marched steadily downward from 8.2 percent last year to an expected 7.3 percent this year. Finance Minister Michael Noonan says Ireland hopes to post a 4.8 percent deficit in 2014, then 2.9 percent in 2015. But he said Ireland would keep pruning to get its later deficits down to the eurozone's future rule of below 0.5 percent of GDP.

"This isn't the end of the road," Noonan said of the bailout exit. "This is a very significant milestone on the road, and it gives us an opportunity to pause and reflect for a very short period.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $109.50 -1.16%
FB $92.47 0.08%
GOOG $639.16 -0.50%
TSLA $226.72 -2.26%
YHOO $32.37 1.57%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs