Madam, – I would suggest that our Government needs to be conscious of two factors in the period ahead. First, debt restructuring is coming – viewed from this location, it is not a question of if, but when. Greece has been burdened with a real labour of Sisyphus: the cuts imposed just make the deficit bigger; the negative multiplier decimating the economy simply precludes success of the present policies dictated by the EU/IMF. Our own Government needs to be ready for rescheduling negotiations when the ECB can no longer see the protection of the German banks as its sole imperative.
Second, the Government will encounter a bump on the Irish section of the road ahead. It seems to have escaped general notice that at their meetings in March the European prime ministers/ presidents (including the Taoiseach) endorsed a series of agreements which – while they offer no prospect of significant debt reduction – impose on the euro-zone members a whole series of Comecon-style restrictions on economic sovereignty.
If this “Pact for the Euro” (or whatever name it goes under at this stage) is to have any clout, it will require an amendment of the treaties. This in turn will require a referendum in Ireland, giving the people the opportunity of sweet revenge. In the light of recent events, a Yes vote seems improbable. The Government will then need to negotiate our exit from the euro zone.
In any case, the euro zone “one-size-fits-all” no longer fits Ireland.
Germany is booming while Ireland has been signed up for years of penury. We need a currency, not crucifixion. – Yours, etc,