Euro exit
I would just like to take issue with some of the content of the article by Brian Hayes in the Irish Independent regarding so-called "car-crash economics".
The first thing I would like to point out is that nowhere have I seen or heard anybody suggest that taking some unilateral action would "resolve our problems overnight", as you implied.
From what I have read, those who advocate leaving the euro are fully aware of the gravity of such action and the potential consequences, and I think it is extremely disingenuous for you to misrepresent such people by saying that they present leaving the euro as an "overnight" solution.
You also imply that leaving the euro would lead to difficulty in Ireland attracting foreign investment, yet fail to consider the attraction of relatively cheaper labour costs due to a new, weaker currency.
It is not unreasonable to suggest that, together with our corporate tax and skilled workforce, a significant reduction in labour costs would, in fact, lead to increased foreign direct investment in Ireland.
You say that those proposing to leave the euro should "honestly acknowledge the likely consequences" of such action.
Well, I think you should honestly acknowledge the likely effect of such action on both tourism and exports. You touched on exports but only to say that our exports were a major positive, but failed to acknowledge that the likely outcome of our exports becoming cheaper was a significant increase in those exports levels.
Also, a new, weaker currency would make Ireland a much cheaper place to visit for tourists. In your 'honest' assessment of the situation, you neglect to mention this factor at all.
Just as you fail to mention the flip-side of the export coin -- the increase in costs of imports. This, I believe, would naturally lead to people turning towards cheaper domestic produce and providing yet another boost for the economy.
If leaving the euro is "car-crash economics" then there is a case for saying that remaining in the euro is 'Titanic economics'.
The eurozone has stuck an iceberg and is slowly sinking, yet instead of leading the Irish people to the relative safety of a lifeboat, this Government has decided that we should cling to the rails.
It is clear that this Government has a particular course that it intends to pursue when it comes to the euro crisis. The selective omissions from your one-sided article illustrate this nicely, as does the Government's determination only to give the Irish people a referendum if it is absolutely legally necessary.
Any decision on the future direction of the European Union should be put to the people of this country for approval, regardless of whether there is a legal requirement or not.,
Simon O'Connor
Address with editor
Irish Independent
