Originally Posted by
JohnnyCarmello
2bn is nothing though, in comparison to the bailout given to the banks which was >50bn. This will not bankrupt the country. You're talking about ~5% of GNP. Which will be borrowed at historically low rates, unlike 12 years ago.
€2b is just the figure for unemployment supports & not even for a whole year. Add in lost income tax for hundreds of thousands of extra people, a massive drop in VAT both from domestic individuals and the certain plummeting of tourists, a certain fall off in corporation tax take as businesses either close or shrink. On top of this, the demand for supplemental supports such as housing & other forms or welfare will also increase. €2b is just the tip of the iceberg. I heard a figure of €35b mentioned last week & by no means is Ireland amongst the worst affected countries. I’d suspect the economic impact for Spain & Italy will be substantially bigger