Irish Economy Shrank in Second Quarter

The Irish economy, which was one of the main countries in Europe to suffer duing the recent financial crisis has suffered another major setback as the economy shrank by 1.2%. It was only a few months ago that economists highlighted Ireland's economy because of a 2.2% increase, which led to many economist believing that this number would soon increase within the next couple months. This slow growth has led to a budget deficit equal to the small countries GDP which means that the government must do something to generate tax revenue for the country. Along with this the Irish government must cover real estate and bank loans which adds up to 30% of all economic output. Other consequences of this financial crisis to Ireland is the decision to make major cuts to public sector wages and pensions. These budgets have lead to a growing distaste of the Prime Minister Brian Cowen. How do you think the prime minister and the Irish government should handle this current crisis. Do you believe that the banks should play more of a role?