incredible he openly admits he “does not wear an Irish hat going into a discussion on monetary policy” The 2 brians without a brain ( remember those buffoons) and Enda & The Gang will never open admit they follow the Brussels line all the way to perdition.
You’re being unrealistic, not just you lord vader, but the rest of you.
What’s more important, 160bn in funding for the bust banks long-term at low rates or making a gesture on interest rates that is not supported by inflation data and would be voted down anyway?
How do you build allies on the ECB board? By sitting in the corner whinging that inflation is above the ECB mandated level, but you don’t like that because Ireland is bust? Or by carrying out your existing functions to the letter and then seeking to push the envelope of ECB competency outwards so that it will be responsible for bank busts in future?
Really, do you think every fight is about a single vote?
We are a small peripheral with little clout in Europe and the timing is not right to be banging on the table over interest rates. In the bigger picture the current rates are not real even though we are in a difficult recession. At 0% many will not pay off outstanding debts and other solutions are required. This will likely need EU input not to mention the current account deficit which they with the IMF will likely need to intervene as this is too complex and difficult an issue to handle ourselves.
Some in the ECB have been doing a bit of sniping against Honohan recently, telling people he sees himself “too much as Ireland’s central banker rather than the representative of the Euro system in Ireland”.
I had always thought about the ECB board of governors as being like the European Council where Enda represents Ireland, Merkel speaks for Germany, Sarko defends French interests etc.
I wouldn’t be enthusiastic about leaveing the Euro, nor am I especially sensitive about ‘sharing sovereignty’ - but I am now waking up to how much sovereignty was quietly ceded when we joined the common currency. As far as I remember this wasn’t a huge talking point at the time. Ten years ago it was all excitement about not needing Pesetas when going on holidays and congratulating ourselves on how smoothly the transition went.
I thought we voted for European integration including monetary union.
Being part of such a monetary union has its advantages. Indeed it has its disadvantages too, but it was clear that the advantages outweighed the disadvantages when we considered how we might best position ourselves for investment and growth.
And, the monetary tool impicit in monetary uniion is a much different beast than what we came from before - the tool requires much different handling. Thus, Honohan’s aprroach. Which is absolutely correct.
Anyway, what if we still had the punt? - You can be sure that the plebs would be even more vociferous after the Irish government would have been forced into devaluing it (likely after warning all the insiders first what was going to happen). And think of the repurcussions on the investment landscape. Etc.
But facts don’t seem to matter in posts like the OP. What does calling the CB governor by the wrong name, or a selective and misconstruing reading of the facts matter to an emotional argument?
Ireland is part of the Eurozone and as such it is in our interest that decisions are made in the best interests of the community as a whole. As long as we are part of the Eurozone it is not in our interest that the Eurozone fails or is weakened.
Patrick Honohan’s job is first and foremost to ensure our interests are represented through the best interests of the team as a whole and then once that framework has been established, ensuring that Ireland’s interests are best served within this framework.
Parochial politics is not a solution. This has been proven over and over again here at home. Michael Lowry did a great job for his local constituency but not for the country. Pothole politics seemed to have met it’s deserved end in the last election and it is certainly not going to have an audience in Europe.
If we reach a point where the potholes in Ireland need to take precedence over a European road system then it’s time to decide how to press the exit button and leave in the least painful way.
Not really, it’s run in the interest of Germany and France, and to a lesser extent to the Netherlands. Hence low interest rates when Germany was struggling and rising interest rates when Ireland, Portugal, Italy, Greece and Spain are struggling.
Why all the focus on Ireland’s corporation tax and a complete absence of debate on the Netherlands part in tax avoidance?
I think the reason for the focus on our tax rate as opposed to the Netherlands is that Ireland ended up needing a bailout. The lenders are anxious to keep the bailout to a minimum and so are looking at other sources of funding. From an external perspective, increasing one of the lower corporation tax rates in Europe seems an obvious source of funding.
In any political union there will be debate as to which sections of society benefit from political decisions. Recently there was a debate here as to whether Dublin / Dublin South / D4 benefited more proportionally from government policy than the rest of the country. You will generally find that areas with the greatest population benefit or are at least perceived to benefit most. That aside, Ireland with a small population has, since joining the EU, managed to secure one for the highest rates of funding per capita from the EU budget which has played a huge part in the development of our infrastructure over the last couple of decades.