Sir, – If one looks beyond the short term, Ireland’s economy will be in a better position than those of other EU member states, rather than worse. Because we have the youngest population in the EU, we should be the least affected by the problems of an ageing population.
We should therefore be very worried by the possibility that we might be forced into a fiscal union with other euro zone countries. Those countries will face large budgetary problems as their populations age.
In a fiscal union with transfers between states, those countries’ problems would become our problems, and our biggest advantage would be lost. For this reason, and because of the prospect of corporate tax harmonisation, if Ireland joined a fiscal union it would be a costlier mistake than the bank guarantee.
Therefore, in order that we cannot be forced to join a fiscal union, we must regain our freedom to refuse, by moving to a balanced budget as soon as possible, whatever the short-term pain. – Yours, etc,