Rushing Into EMU

Sir, - Dr Martin Pulbrook (January 9th), refers to his shock at the commentary on the euro by your Finance Editor

Sir, - Dr Martin Pulbrook (January 9th), refers to his shock at the commentary on the euro by your Finance Editor. Like him, though for different reasons, I am shocked also that the present political leadership, together with the permanent bureaucracy, appears to be sleep-walking into the euro at unspecified terms. The commentary by your journalist Sean MacCarthaigh in your edition of January 17th was a long overdue contribution to the effects of devaluation on our economy. The comment that "for the past six months behind closed doors, the Central Bank has been trying to persuade the Government not to merge with the euro at the central rate" is noteworthy, given that the Government appears to be gearing towards the central rate.

It is incomprehensible that at a period of record unsustainable growth in the economy which has being further fuelled by an expansionary Budget considerable devaluation of our currency should proceed without any Government statement or policy on the matter. Confidence is further eroded when it is noted that it is those same politicians who are again in power together with the permanent bureaucracy whose policies when sterling left the ERM in 1992 cost the country and its citizens excessive interest rates, with a belated devaluation finally necessary after considerable economic damage had been done. The beneficiaries, of course, were the currency speculators!

For a Government to proceed on this course of devaluation by default, with its effect on national assets, national debt and inflation, is both foolhardy and unpatriotic in the pursuit of perhaps questionable short-term political gain at great long-term loss to the economy. The absence of any White Paper on this important decision is inexplicable. Surely one of those Dail committees should be explaining this current deficit in democratic debate and opening "the closed doors" for those Central Bank persuaders. We are anxious to hear them! - Yours, etc,

Ballymun Road, Dublin 9.