Only Republic of Ireland seems to be serious about deficit.

It seems that only the Republic of Ireland is serious about reducing its fiscal deficit. Developed countries like the United States, United Kingdom and Greece are hoping that economic growth will turn up. However, they are allowing their policies to be dictated by the credit rating agencies. In yesterday's Sunday Times, Irwin Stelzer was scathing about the public sector liabilities being built up in the U.S.
Here, in the UK we share problems such as underfunded pensions.
I don't think the Irish actual cut in public sector wages will be replicated in the UK, which seems to want inflation to do the job.
Stelzer's fellow commentator David SmithHe describes UK Chancellor Alistair Darling as a Jekyll and Hyde character, who compared to his pre PBR briefings to journalists, did the actual opposite in the
statement. Public spending and the fiscal deficit will go up rather than down in the medium term.
From filling your car with petrol to running a small business, we are obviously not an under-taxed nation. I think it is implicit in Labour's thinking that difficult issues such as the possible spiral in public sector borrowing will not happen. Or it could be resolved by scrapping Trident and taking a less-demanding role on the world stage.
In today's Daily Telegraph, Roger Bootle, says the UK does have the advantages of a flexible labour market and exchange rate depreciation. This allows us to gain competitiveness without the future years of painful deflation for
Ireland. Although the UK does have the problems of its public sector and state education system.
I think that the Irish might have to admit defeat and pull out of the euro. Depression would endanger the gains made by the country recently. Greece says it will not go down the route of wage cuts but the markets will probably make some kind of decision for it. The smaller economies in the EMU could have handled the single interest rate better but that is in the past.