The Sinking Euro

Sir, - Is there any Irish politician with the courage to break ranks and question this country's continued membership of the …

Sir, - Is there any Irish politician with the courage to break ranks and question this country's continued membership of the euro? In the past year, the value of this currency has gone only one way and that is down. Yet, with the exception of a few commentators, no one seems prepared to call it what it is and that is a weak currency. Indeed some "geniuses" have the temerity to try to argue that the value of the euro does not count because of the large population and geographical size of the euro zone. This logic is on a par with saying that the depreciation of the Russian rouble did not matter to Russia.

For months the euro has fallen against the dollar and against sterling. Commentators and politicians have brushed this aside by saying that the dollar and sterling are overvalued. What they fail to mention is that the currency has lost 10 per cent against "weak" currencies such as the Swedish krona and the New Zealand dollar and is barely holding its own against minnows such as the Czech crown and the Polish zloty. Has it not occurred to them that it is the concept of the euro which is losing value? The world's financial markets have no confidence in it.

The Irish economy - and indeed its culture, by reason of its geographical position and language - has always been a satellite of the British economy. To pretend otherwise is a form of nationalistic folly. In recent years, owing to the same forces, it has become attached to the US economy. This is as a result of the massive investment by US firms in setting up European headquarters and telecommunications offices here. A buoyant US economy has resulted in dollars washing up on Ireland's shores at the same time as most mainland European economies are experiencing low growth rates. Despite what some Ministers may pretend, there is no mysterious secret behind Ireland's recent economic surge; we're merely following the US. The policy of alignment with the US economy has been government policy for a number of years and successive governments.

At the same time, the government in some misguided attempt at showing Ireland to be a "good European", signed the country up to a common currency with a group of countries with which Ireland has virtually nothing in common. What is the worth of Irish exports to Finland, Portugal, Austria and Greece? Virtually nothing. This policy has now led to a point where Ireland has a buoyant economy awash with money thanks to a successful US economy and at the same time our currency, instead of appreciating in value, is losing value. Unless this is addressed immediately, the result - akin to two express trains travelling on the same track - will be that our economy will overheat and crash to such effect that the 1980s will resemble the "good old days".

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When, not if, the Danes vote against joining the euro the currency will become even more discredited. The next move will be that the German government will review its position, both from the viewpoint of the German economy having an unstable currency and its own re-election prospects. Before any more time and resources are wasted here in conversion, Ireland should withdraw from this illogical and ill-conceived project. - Yours, etc.,

John Davis, Kincora Grove, Clontarf, Dublin 3.