Is austerity inevitable? Will drastic cuts to our living standards be required to make sure the bond markets lend to us again? A new report from the fiscal council suggests we will need €2bn in cuts after 2022 to stabilise our state’s finances and pay off debts run up through the crisis. What are our options?
In part one of this two-part series, Ross Hunt makes a case for a strong environmental component in the stimulus packages required to recover from the global Covid-19 crisis. He believes normal market rules will not work because we must solve multiple problems beyond the pandemic – and we are running out of time.
The insurer has sought to reassure investors as its battle with a small army of publicans intensifies. It is also seeking to draw focus to government, saying the only way insurers could fund pandemic cover would involve a state pooling arrangement.
In contrast to their bond brethren, stock investors will likely be well compensated for risking their capital. Historically low discount rates matter and the recent return to optimism may be less surprising, and more durable, than many currently suggest.
The Currency was first to report on the overvaluation of the north-western agribusiness’s sports nutrition subsidiary My Goodness, and annual accounts have now confirmed an asset write-down. But there is much more to the co-op – and other options to sustain it into the future.
We sacrificed tax to lure multinationals. We need similar thinking to help our SMEs in a time of crisis. The first step should be a new deal on rents, which would allow cash strapped companies to survive.
If the Irish banking system refinanced its mortgage book, it could then pass on significant savings to Irish mortgage holders. This would offer significant stimulus to the economy of around €200 per month for the average Irish mortgage holder.
Depending on how it is allocated, Ireland could receive between €2bn and €4bn from the Franco-German proposal. But as a net contributor to the EU budget, the fund could cost Ireland around €8.45 billion over the years. And there is also an ominous warning around future tax reform.
The German Constitutional Court ruled that, in printing money to buy bonds, the ECB seemed to be exceeding its mandate. Complying with the order would tie the bank's hands and make its job impossible. Will the ECB ignore the courts of its most powerful member? And what does it all mean for Ireland?
Butter prices are down, farmers are getting less for their milk and cheese stocks are going into cold stores. But unlike other sectors, Ireland’s dairy industry is working as one and its businesses entered the crisis with strong balance sheets.
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