Sir, – Further to "Central Bank covering its backside on overheating", Opinion & Analysis, April 28), why does David McWilliams single out the Central Bank for criticism and not our illustrious political leaders, who in their mad pursuit of a "United States of Europe", threw caution to the winds and opted for a single interest rate for the whole of Europe?
Plain common sense tells us that a single rate for 27 economies at different stage of development, is a recipe for disaster.
Witness 2008. Ireland was booming and needed a higher interest rate, Germany was in the doldrums and wanted a low rate.
Germany won, and Ireland paid the price.
The same scenario is beginning all over again. Ireland (if one can believe the hype) is overheating and needs a rate increase. Germany is slowing and needs a low rate. As the German economy is the European motor, Germany gets what it needs. What happens to the weaker economies does not concern them.
A single interest rate for 27 economies is doomed to failure and must inevitably lead to the demise of the monetary union and the euro.
The trouble is how many booms and busts must come and go before we realise the cause lies with a fundamental flaw in the monetary union. – Yours, etc,
MICHAEL ENRIGHT,
Ardagh,
Limerick.