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Exiting euro won't cure our debt sickness

In my view, such a course as advocated by Paul Krugman, undertaken in cooperation with the EU member states and the ECB is a correct one for Greece, and possibly Portugal, but not for Ireland or Spain. Unlike Greece and Portugal, Spain and Ireland are suffering not so much from the sovereign debt overhang, but from private and banking debts crisis.

Resolution of these crises will not be helped by an exit from the euro, primarily because our debts are denominated in euro. In addition, exiting the euro will entail significant economic and reputational costs to an open economy, like Ireland, reliant on Foreign Direct Investment and high value-added euro-related services, such as the International Financial Services Centre, and the multinationals' goods and services trade.

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