Tag Archives: bailout

The UK on Ireland: Help You to Help Me

22 Nov

My neighbour is in trouble. He will go bankrupt if not being helped. I need to pay a great fortune to help him out, and this move may hurt me a lot. People are saying that this could be a stupid move. I hesitate.

This is not some kind of help coming out of nowhere. I make my decision based on my rationality. I should help my neighbour especially when he is closely related to my own incoming. If I do not give him a favour, the next casualty could be me. I decide.

The UK government has agreed to participate in a bail-out project costing 7 billion pounds, according the BBC, to save its neighbour Irish Republic out of the threat of bankcrupcy.

Considering the intimacy of the two countries in many aspects, it is a smart move, maybe in a long term.

Your business is also mine

In terms of international trading, the Irish Republic is among the most important partners of the UK.

For a long time the UK is exporting its goods and services to Ireland as a crucial part of its economy. Actually the trade with Ireland is so important that according to the BBC, it outmaneuvres the sum-up amount of UK’s trade with Brazil, Russia, India and China.

Britain's paying pounds to save Ireland

Maybe you are not doing business with any Irish people directly, but on average every man and woman in Ireland are contributing £3,607 each year on British goods and services.

A fall of such a partner will also mean serious damage on the incoming of the UK through trading.

Tracking back to the period after the Second World War, the Americans have done a similar favour to the Europe with the Marshall Plan.

Helping a close neighbour in terms of economy is also helping ourselves. The post-war US economy may not be that healthy if just standing by and seeing the Europe dying.

Giving out help in a time of austerity

Britain is still suffering from economic problems although The Times contended in January this year that it has just exited the longest recession.

Sellers at the Christmas market in Hyde Park are still worrying about their sale in winter. And this is already November.

But the help still needs to be conducted to prevent things from going even worse, although 7 billion pounds may sound a great figure.

Of course this move is still open to question especially personages like John Redwood believe that the UK should not be part of the bailout plan as it is “not Britain’s problems”, according to The Telegraph.

It is true to some extent, but an even more prominent fact is that nobody will escape from an economic failure of any country as long as the process of globalization is moving forward rather than retreating.

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