Finance and economic ministers are meeting in Brussels Wednesday to discuss Ireland's economic woes within the European Union. Irish Prime Minister Brian Cowen has committed to reduce the country's debt by the end of 2014. However, the country is dealing with debt that will total 98.5 percent of its entire economy this year.
The Irish government claims it does not need aid at the present time because there are enough funds to tide the country over until the middle of 2011. Also, the interest rate on the debt rose yesterday. Other governments in the EU struggling with debt have cut corners by cutting spending and raising taxes. Although this can help cede the debt for a limited amount of time, it makes it harder for nations to repay their debts and grow economically.
Since 2008, Ireland has slashed $20 billion off the budget and plan to slash an additional $20 billion over the next few years. At this time, they are resisting assistance in the form of a bailout because it could mean possible dispute for the national elections next year.
--Emily Goodfellow.
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