Sir, – Your newspaper’s revelations regarding the European Central Bank letter of November 19th, 2010, confirm the worst suspicions of many (“ECB threat to cut off banking funds revealed”, Front Page, November 6th). As a small, peripheral state, we carry no weight in the EU, despite political claims. If the EU says jump, our political leaders do so. No matter what suffering must be imposed on the people, the “political elite” will not let the EU project be derailed.
Perhaps we can look on the ECB letter as a wake-up call? – Yours, etc,
GILES FOX,
Kilmacud,
Co Dublin.
Sir, – Before the hysteria starts, it needs to be pointed out that the tone or content of the European Central Bank letter, while meeting the usual Irish default need to blame someone else, isn’t the point.
The point is that Brian Lenihan and the Cowen government gave in to the threat. When people argue that they had no choice, that myth needs to be nipped in the bud.
Just as the claim that the Kenny government had no choice either is a myth.
If the Irish taxpayer had only been required to fund the loss of tax revenue and increasing welfare costs, and not the banking debt too, then the recession would not have been so severe, the Irish pension system would not have been gutted, fewer people’s lives would have been ruined, fewer would been forced to emigrate and the brief window of opportunity to reform the country might not have been squandered.
The sad reality for Ireland is that, when it came down to it, Brian Lenihan put the needs of his party above the needs of his country and he put the wants of the establishment above the needs of the Irish people.
The ECB was perfectly entitled to make whatever demands it wanted but the Irish government was not obliged to accept them.
So before we rush off with our pitchforks to attack the ECB, the political class and members of the government, both past and present, need a reality check. – Yours, etc,
DESMOND FitzGERALD,
Canary Wharf,
London.
Sir, – The tone of the ECB letter that was sent to Brian Lenihan is hardly surprising. What is surprising is the ECB going beyond its mandate of monetary policy to interfere in the fiscal policy of a sovereign nation. This is evident in the letter: “The request [for a bailout] shall include the commitment to undertake decisive actions in the areas of fiscal consolidation, structural reforms and financial sector restructuring”. It went further with an insistence that the Irish government raid its own National Pensions Reserve Fund (NPRF): “The plan for the restructuring of the Irish financial sector shall include . . . existing cash reserves (NPRF) of the Irish government”. This fund was wisely set up to alleviate the inevitable pensions crisis that is coming down the line. At the ECB’s insistence, we have robbed Peter to pay Paul. – Yours, etc,
JOHN BELLEW,
Dunleer,
Co Louth.
Sir, – “With kind regards”? – Yours, etc,
PATRICK O’BYRNE,
Phibsborough,
Dublin 7.