Monday 11 December 2017

Making a return to sovereignty is no magic bullet for the State's recovery

With the Troika looking over their shoulders, let's hope Government can avoid the nightmare of a second bailout, writes Willie Kealy

Willie Kealy

Willie Kealy

Don't get too hung up on the backstop. That's the overdraft that Michael Noonan would like to put in place for when we exit the bailout, just in case we need to borrow a bit more money.

And don't get too macho about regaining our sovereignty either. True sovereignty is an illusion. The US or Germany maybe could be truly sovereign, if they wanted to be. Their internal markets are big enough to create a self-sustaining economy. But like ourselves, they are open economies, dependant on trading with the rest of the world. We all depend on each other, and we are more dependant than most. We were that way before the bailout. We were really dependant during the bailout, and we will continue to be dependant on others when the representatives of the Troika have gone home.

The concern over the backstop seems to be that those who would agree to give us an overdraft – the same people who bailed us out – would attach onerous terms and conditions. And after what we have been through already, we think we have had enough of onerous conditions.

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