Madam, – The two recent reports on the breakdown of the banking system in Ireland predictably avoid the issue of Ireland’s membership of the euro. As ever “cultural deference” to Brussels stifles real debate even while the euro group divides into the solvent and insolvent.
The principle of convergence has been quietly dropped as the so-called building blocks of the common currency have failed to appear. The target rate of inflation was set to converge at two per cent per annum. However, when Ireland’s rate moved towards six per cent the ECB reduced interest rates thereby sowing the seeds of the credit bubble.
I wonder which Irish institution will break rank and propose a viable exit strategy for Ireland to leave the euro bloc? As things stand we are poised to surrender our fiscal independence as the euro struggles and European integration is further advanced.
In the meantime, our jobless youth head off to seek work in the English-speaking economies from which we so tragically have cut ourselves adrift. – Yours, etc,