Economies in crisis - Hard choices but dreadful alternatives

IF yesterday’s very regrettable collapse of talks between the Health Service Executive and IMPACT is an indication precursor of how public sector workers might vote on the Croke Park agreement then we have taken a considerable step along the road to joining Greece in the financial meltdown club.

Yesterday’s decision by IMPACT is far more than a scene from a domestic spat. It, and the shambles over politicians’ ministerial pensions, will negatively influence international markets’ opinion about our ability – and our determination – to confront our runaway biggest-in-Europe deficit.

Markets have taken a very negative position on how Greece’s insolvency will affect the eurozone. Early yesterday Irish shares were in tailspin as Dublin echoed global worries about the euro’s stability. American and Asian markets dropped sharply overnight, followed by European bourses yesterday morning. Investors were spooked by the downgrading of Greek and Portuguese debt sparking fears that a debt crisis may spread across Europe’s weaker economies, Ireland’s included.