Sovereignty was taken with euro
Published 19/11/2010 | 05:00
All the crocodile tears being shed for the current episode of 'sovereignty loss' would be a bit less nauseating if they were accompanied by even a modicum of recognition that when this country's authorities adopted the euro, and thereby abolished national control of interest rates and exchange rates, they abandoned the essential economic instruments of sovereignty.
Remember the key question asked in last June's Regling-Watson report on the banking crisis: "Was it a coincidence that Ireland's economic fundamentals began to deteriorate when Ireland joined the euro area?"
And their answer: "In a monetary union, the challenges for policies becomes even greater as monetary conditions cannot be influenced directly and the (nominal) exchange rate is no longer a policy instrument."