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In a dramatic press conference, Irish PM Cowen announced that he would dissolve the parliament right after the budget passes. But can he pass it?

The Irish government, led by prime minister Cowen and by finance minister Lenihan, may not be able to pass the 4 year budget. Their coalition partner, the Green Party, demanded elections, and some other members aren’t supportive of the budget. Add a  by-election that could narrow the coalition’s majority even further, and you have tough times. Without the budget, there’s no EU / IMF package, and this is bad not only for Ireland, but for Spain and Portugal as well.

Full story at the Irish Times.

The crisis is far from over – this is well reflected in the Euro. EUR/USD erased all the initial gains it made after the announcement that Ireland will ask for aid.

We’ll get more violent market action on Thursday and Friday, as Thanksgiving provides thin volume from the US, but the Europeans are very very busy…

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