LEAVING THE ZONE:A FINE Gael backbencher has questioned whether the euro is essential to the Irish economy or the future of European political and economic cooperation.
Dublin South-East TD Eoghan Murphy says an exit from the euro, while it would be incredibly chaotic for Ireland, “wouldn’t be the end” and could even help to strengthen the economy.
While expressing support for Government financial policy, he says we should have no “jingoistic affection” for the euro, because it is merely a financial tool.
According to Mr Murphy, the euro zone is at “a defining moment in time, a point where it dies a painful death, or stands up stronger, bolder and better than before”.
“We may still muddle on for a bit, as we have since the crisis first erupted early last year. But we’re only delaying the inevitable. The eurozone question must be answered, by each of us,” he writes on his website.
“There was an economy in Ireland before the euro and there will still be one if we leave the euro or if the currency itself disintegrates. The euro is the currency denomination in which we trade with others. We could, as we have in the past, trade with another denomination if needs be.”
Exit from the euro would be chaotic and damage parts of the economy but would also strengthen other parts.
“Life would get a lot tougher, very quickly. But it wouldn’t be the end. Some would argue that it would in fact be the beginning of our economic recovery proper because it would dramatically reduce production costs and increase competitiveness, make exports even stronger and make imports more expensive, helping a seriously sluggish domestic economy to get moving.”
Perhaps the only certainty is that “a lot of people will lose a lot of money,” says Mr Murphy, a member of the Public Accounts Committee.
Mr Murphy says he believes the Government is doing an excellent job putting the country’s finances back on a secure footing. However, we could be faced with a choice in the near future.