EU is a union only by name with each member vulnerable
Published 07/07/2015 | 02:30
The Greek referendum has produced a resounding rejection of the proposed humiliating EU rescue package. It looks as if Greece's exit from the euro is inevitable unless there is substantial financial intervention from the European Central Bank, a proudly independent institution which will have difficulty sustaining that independence.
When the euphoria subsides we may witness the unedifying spectacle of Greece being engulfed in a wave of economic and political instability, with the consequence that the whole European single currency enterprise may become dysfunctional. The EU has been described as a burning building with no exits, a potential disaster from the start. Greece joined the union ill-prepared, without the financial systems and institutions to support the level of innovation needed to sustain the implementation of the requisite policies and practices. The referendum has been divisive.
Destabilising Greece's relationship with the EU would be a laudable pursuit if the intention and the outcome had been focused on human well-being rather than on the political futures of politicians. Any significant change in the way Greece conducts its affairs will require the exercise of human imagination in full flight. There can be nothing short of a far-reaching transformation of the way the economy is managed so that inward investment is encouraged. Ireland can no longer be complacent. Dependence on membership of the euro club leaves it very vulnerable to the negative influences of fluctuations in global and European financial stability. We could so easily become seduced by a minor boom into the makings of a major bust.