News Letters

Sunday 31 August 2014

We'll pay too high a price for EU bailout

Published 16/11/2010 | 05:00

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Given the financial mess the country is in, it seems that it is only a matter of time before some financial support is requested from either the EU or the IMF.

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Might I suggest that as Ireland has gotten itself into this mess, Ireland must get itself out of this mess.

The danger is that if this Government acquiesces to the EU's offer of help, the 'payback' to the EU will be to control Ireland's taxation policies -- especially by changing the favourable rate of corporation tax of 12.5pc -- which the central power-base of the EU loathes, mainly Germany, France and Britain (the EU 'cartel'), as they have all lost valuable investment to Ireland due to its low corporate tax rate.

This Government is weak and will cave in to demands from the EU 'bully boys' -- remember Lisbon 2: Ireland did not deliver and was told to try again.

The IMF may set more draconian terms for Ireland in the short term, but, in the longer term, Ireland can re-discover its economic strength. If Ireland is told by the EU cartel to increase its corporation tax rate, it becomes a less attractive place to locate a business, corporate HQ or manufacturing base.

Ireland should regard the EU cartel as a 'wolf in sheep's clothing' as it is seeking to protect its own self-interests in terms of the strength of the euro as a currency, not Ireland's -- don't forget interest rates in the eurozone were kept low to suit the needs of Germany and France, which is what caused Ireland to have access to cheap funds for speculative investment and we are now painfully dealing with the consequences of that.

Perhaps Ireland should quit the euro, align the restored punt to sterling (Britain remains the main trading partner for Ireland, not the EU) and take charge of our own destiny?

Lastly, we need strong leadership in Ireland and the present Government is lacking that because it cannot see the Croke Park agreement is hugely flawed. But nor could it see that benchmarking non-productive institutions, like the Dail, is also flawed. Will the next Government have the leadership qualities to make these changes, including cutting the number of TDs?

Only time will tell, if there is time . . . but it's time for the people to decide.

Aindrias Scannell

London

Irish Independent

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