Ireland is getting ready to receive anti-crisis financial aid to the sum of 90B euro.
However everything is not as simple as it may seem: in order to get the financial aid the country will have to accept the austerity plan. That is the decision made at the video conference of all the EU finance ministers. All of them are members of the ECOFIN Council. 16 ministers representing the Eurozone states make up the Euro Group.
According to the final declaration of the ECOFIN and the Euro Group, only 3 financial sources will be used to make up the financial aid package: the funds will be provided by the IMF, the EU and the Eurozone.
But in order to receive the money Ireland will have to develop and implement an austerity plan aimed at recovering the national economy. The ECOFIN and the Euro Group claim that the budget consolidation program should be conformed to the Irish authorities and the ECB.
*A series of changes in the Irish tax code will serve as basis of the program. Dublin has only one week to work out the plan of radical changes and present it to the corresponding institutions. The program is expected to hold true within the next 4 years. The aim is to reduce the budget deficit by 2014 - by 3% of the GDP on average – according to the Stability and Growth Pact (SGP). As for putting it into practice, Ireland should reduce its budget deficit from 50B down to 5B euro within the allocated time.
*The IMF will take part in providing Ireland with financial support, Managing Director of the IMF Dominique Strauss-Kahn says. According to him, the IMF is ready to help Ireland, including long-term lending.
According to “Forex trend” analysts, providing Ireland with financial aid is directly connected with the Eurozone’s future financial stability. That is why EU finance ministers strive to assist Ireland and support the ECB and Euro Commission’s decision to help the “problematic” countries of the EU.
There is another interesting fact on the matter. Some European countries that aren’t members of the Eurozone, such as Great Britain and Sweden, strive to help Ireland as well. GB was the first to offer 8B euro.
The major part of the financial aid is expected to be provided in the form of 3-to-5-year loans at 5% interest per annum. It also should be noted that according to the United States the European Union is capable of dealing with the Irish crisis.
Along with all the above-mentioned and despite all the difficulties it is too early to consider Ireland a bankrupt as the country possesses considerable currency reserves, the Finance Minister of Ireland says.
Masterforex-V Academy experts note that on Sunday at an emergency session the Irish government decided to seek help from the EU and the IMF. Ireland will get the financial aid if it develops austerity plan aimed at reducing the budgetary spending. As far as Forex is concerned, EURUSD shows bullish sentiments. According to the Department of studying Masterforex-V TS , the price has recently formed wave a (C )/shortened C. Once the price comes out of the MF sloping channel and gets over the MF pivot at 1.3662, the wave started at 1.3446 will be terminated. Otherwise EUR will keep gaining in value through wave c (C ).
Support/Resistance levels:
1.4018 - 250% а(С) + 200% А
1.3903 - 176.4% а(С) + 161.8% А
1.3844 - 138.2% а(С) + 138.2% А
1.3742 – the current price
1.3708 - 50% а(С)
1.3667 - 76.4% + pivot
1.3656 - 38.2% А
1.3617 -50% А
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