Sir, – Those advocating a No in the fiscal treaty referendum tell us that “austerity is not working” but that a massive stimulus package will revitalise the economy by creating thousands of jobs that will eliminate austerity.
If Ireland were to remove itself unilaterally from the exchange stability mechanism and there is no comparable alternative external support to replace it, the risk attaching to our bailout loans will be hugely elevated.
If the lenders were to respond with demands for unprecedented swingeing cuts in public expenditure to compensate for this, the funding for health, welfare, education and pensions would be brutally curtailed. Living standards and export earnings would be undermined, making it very difficult for the economy to be imminently revitalised.
The prospect of that scenario and even the uncertainty surrounding it would diminish investor sentiment leaving Ireland marginalised and in an ossified, 1950s-like, paralysis. That is hardly the ideal backdrop from which to celebrate a centenary of nationhood.
It is therefore incumbent on each side of this debate to move past the vacuous slogan and the empty rhetoric and present a rational, coherent, credible and compelling argument of their position and the risk profile associated with it. – Yours, etc,
Sir, – “EZ Fiscal Compact DOA even before ratification”. This was the tweeted judgment this week from Nouriel Roubini, the man who successfully predicted the collapse of investment banking and the range of “financial instruments” that brought about the biggest depression since the 1930s. This man deserves to be listened to.
It seems that the “group mind” that gave us “consolidated debt obligations” is now attempting to convince the world that a “one size fits all” set of economic rules will properly serve the dramatically diverse economies of Europe.
The most common refrain of the compact enthusiasts is that the No side has no alternate vision. But isn’t this the position of the Yes side too? How on earth is a manufacturing/exporting power-house like Germany meant to operate the same economic controls as Ireland, an economy that couldn’t be more diverse than Germany?
For example, we insist on economic diversity/separatism – with regard to corporation tax – precisely because we know how dependent we are on the US and world markets, served by the US multinationals operating here. The truth is that in the long-term the economic rules will conform to the needs of the largest economies.
The Yes side need to immediately explain what kind of European economy will emerge long- term, as a consequence of the adoption of this treaty. – Yours, etc,
Sir, – The trade union leaders who are calling for a No vote in the upcoming stability treaty referendum should be utterly ashamed of themselves, as they are in reality asking their members to vote for the destruction of their own jobs. – Yours, etc,
A chara, – I must rush to the defence of Sinn Féin in the recent “Quotegate” leaflet scandal. They should, in fact, be congratulated for their wholehearted embrace of austerity – in word and in deed, if you think of the savings on ink toner. – Is mise,