More European Financial Woes

The European union is facing another financial crisis with the Ireland's national budget approval on the not so distant horizon. The country is teetering on the verge of bankruptcy and to save the collective the European Union is planning on giving roughly 85 billion euros to aid the country. Now here's the catch, many officials in Ireland a fighting against receiving the bailout because it would damage it's sovereignty, and impose a large debt to be paid to the International Monetary Fund. The policy tools in use here are making Ireland hesitant, a lot of the money will be loaned in a direct government fashion which undermines national sovereignty. At the same time Ireland is actively trying to balance its budget without receiving a bailout. As an outsider one has to note that this is the exact reason that so many people were against forming the EU in the first place, beacuse of the risk of individual countries endangering the collective.

http://www.nytimes.com/2010/11/16/business/global/16euro.html?pagewanted=2&_r=1&ref=business