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Ireland’s Need To Regain Economic Sovereignty


Back in 2010, towards the end
of 2010 when we signed for the conditions for the bailout from the international Monetary Fund, the European
Central Bank and the Commission of the European Union, there was a lot of talk about us
losing our economic sovereignty It’s quite understandable, as it
seemed as if we were handing over the management of our economy and indeed our
whole country two a Troika of outside institutions Of course, the reality was more complex
because this programme we entered in to at that time was in fact
negotiated between our government, our Central Bank and those international
institutions in the Troika and we agreed and we had some influence
on the content in the programme SO it wasn’t a simple surrender to the
conditions imposed on us from outside But none the less there was a sense in
which we admitted failure to manager our economy in a competent way that would have maintained the
confidence of the world bond markets in particular, in our ability raise enough revenue from domestic taxes
to match the expenditure that we felt we had to incur in order to meet the demands of our
population for public goods and services and public infrastructure It is important that we try and
regain economic sovereignty, in the sense that we will be able to go to the world money
markets and raise enough money to close the gap between our tax revenue and our
public expenditure at exceptional interest rates; interest
rates that will not imply an upward spiral of the burden of
debt to our domestic product Because that would be an unsustainable
and indeed intolerable situation that each year we were paying more in
debt interest as a percentage of our output and getting no more in terms of
public service or public infrastructure formation So how do we do this? How can we restore economic sovereignty in that narrow and
technical sense? The main plank of the restoration of economics
sovereignty will have to be adhering to the program that we have
negotiated with the Troika That is to say – meeting the targets that
have been laid down now between the year 2015, which essentially envisages that the
Irish economy will manage its government spending and
tax receipts so that the gap between the two falls to a level of 3% by 2015 That implies harsh medicine in the form of more difficult, tough budgets we’ve already been through 4 of these but we still have a gap between revenue and
expenditure of just under 9% of GDP and we have un urgent need to continue
home on the measures that we’ve been taking; implement the ones we already have taken
and put more in place in order to get revenue up and receipts expenditure down we will be helped if there is growth in
our economy – simulated perhaps by growth in the European economy
so that we can export more to the rest of the world and growth perhaps, by inward investment
in order to avail of the attractions we do have for foreign direct investment

Glenn Chapman

One Comment

  1. it was "Only" 4% of people who put Ireland in the "@~#&"
    Put the 4% in Jail and set an example.

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