Очертаният път за излизане от спасителна програма в еврозоната – характеристики и уроци на примера на Ирландия
The Marked-Out Route for Getting Out of a Bailout Program in the Eurozone – Characteristics and Lessons in the Case of Ireland

Author(s): Iordanka Stateva
Subject(s): Economy, Supranational / Global Economy, Financial Markets
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Eurozone; Bailout Program; Internal Devaluation
Summary/Abstract: The presented material analyses the characteristics of economic processes in Ireland that led to the involvement of the country in the debt spiral in the eurozone and later on getting out of a bailout program without a precautionary credit line. Ireland worked out its way out of the debt crisis through increase of competitiveness and economic growth. How Ireland was involved in the debt crisis in the European monetary union is a very cautionary example. The lessons concern mainly the connection between bank crisis and sovereign debt crisis and more specifically the effects of transfer of private bank losses to the state finances. The bank crisis in Ireland, the realization of the unlimited state guarantee for the bank debts, became a centre of serious economic analyses. The result was that mechanisms for cutting the link between bank losses and state finances in the whole monetary union, had to be found. One of the important characteristics of the marked-out route to getting out of a bailout program is the internal devaluation, but also the social price of Ireland’s success as a result of this measure.

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