The Irish government finally accepted the $109 to $123 billion bail-out fund from the IMF and the European Union. In exchange, the Irish government will have to swallow several harsh policies like drastic cut in spending, which adversely affects its welfare system.
The new financial turmoil in Europe has not yet reached a global pandemic stage like what happened in 2008-2009 that started in the US housing market and banks. But the global economic uncertainties are already there. While the Greece crisis has already mellowed, two other European countries, Spain and Portugal, are being watched, also because of their alarming level of public debt, high unemployment, and anemic economic growth.
The Philippine government and Philippine-based corporations and households should always remember that debt dependence is not a good policy. It is better to keep their debts to the minimum, so that when global credits would squeeze later on, there would be smaller financial squeeze to worry.