Madam, – Tim Carey draws erroneous parallels between the Irish situation of 2009 and the “Greek tragedy” of 2010 (February 12th).
One year ago, the implied rate at which the Irish Government could borrow for 10 years was in the region of 5.5 per cent. As I write it stands at around 4.5 per cent, because of the international financial community’s recognition of the tough measures that have been taken to stave off IMF intervention and by taking short term medicine to improve our long term health.
One year ago, Greek government borrowing costs were at 6 per cent. Over the past fortnight they have oscillated between 6 per cent and 7 per cent and frankly without supportive rhetoric from the EU and government-imposed measures such as raising the retirement age from 61 to 63, they would have been higher still. Contrary to Mr Carey’s assertion that the threat of IMF intervention was hollow, there is still a very real possibility of an IMF intervention in Greece as there are many legal and logistical obstacles to EU members giving practical financial support to Greece.
So, with about €77 billion of long-term Government debt outstanding, the measures we’ve taken have knocked just under €800 million a year off our expected borrowing costs, and we largely retain control for over our future destiny. The strikes and public outcry in Greece won’t reduce its debt mountain, nor restore fragile confidence from international investors. What is loss of sovereignty, if not the freedom to choose the course of one’s own destiny? – Is mise,
Madam, – John Rohan (February 13th) asks for a new acronym for the “Pigs” lest Greece leave the Euro zone. Of course if that should happen the obvious acronym must be Sip, as in to Sip from the grail of the ECB. – Yours, etc,
A chara, – The Greek people protest and a European Union bail-out is their likely reward. The EU elite are fully aware the Greeks will not accept austerity measures from international money-lenders or other states without widespread protest, or even possible revolt.
Compare to Ireland where we’ve meekly accepted our medicine, apart from endless radio moan-ins and letters to the papers, and 150,000 marching a year ago behind trade union leaders who have since largely disappeared. The result? Higher taxes, cutbacks hitting the weak and poor, and the amoral obscenity of Nama which the Government and RTÉ correspondents told us was the “the only game in town”.
What about another game we could have played, such as driving a harder bargain with Europe’s financial and political power-brokers? Before the second Lisbon Treaty referendum, our Government could have bargained for more help as its price for holding another vote. The Greeks have shown there are other solutions from Brussels to help with huge national debt, simply by taking to the streets: we had leverage before last year’s referendum, but never used it.
Our leaders and many in the media are instinctively conservative and subservient to the powerful and rich, unbefitting an independent nation.
The notion of a better deal than plundering the pockets of the poor or public sector workers was never even considered. Our leaders touched the forelock and did what they were told by their European bosses and bankers, rather then eke a hard bargain for hard cash for the benefit of the Irish people. They were even proud to boast that Ireland is the whipping-boy who could do his own whipping: remember Minister for Finance Brain Lenihan trumpeting in April 2009 in Killarney the amazement of European leaders over policies like the pension levy, which he said would have provoked riots elsewhere.
“We’re Greeks, not Irish”, was the cry at protests in Athens over the past week, reflecting Ireland’s now widely-famed subservience in the new Europe, the opposite of our historical identity. – Is mise,
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