Wake Up Time for Ireland! Public Enquiry Needed

A public enquiry is needed into how the Irish people have been turned into indentured debtors of the EU, the European Central Bank and the IMF.

We need to know this if we are ever to recover.  We need to know who was ultimately responsible for the situation we now find ourselves in, trapped inside the Eurozone when we did not need to join it.

EU Member States outside the Eurozone like Britain, Denmark, Sweden, Poland and the Czech Republic are not caught up in the current torments of the Euro. They can weather the economic recession better because they have kept their national currencies and with it control of their rate of interest or exchange rate.

Most Irish economists, the National Platform and several non-governmental groups warned at the time of our 1992 Maastrict Treaty referendum that abolishing the Irish pound would be the biggest mistake the Irish State ever made (John FitzGerald’s ESRI was an influential exception). The second biggest mistake – largely a consequence of the first -  was the 2008 blanket guarantee of all the debts of our private banks

The period 1993 to 2000 was the only period in the history of the Irish State when it followed an independent exchange rate policy and effectively floated the Irish currency. That gave us a highly competitive exchange rate and with it  the “Celtic Tiger” growth rates of over 7% a year.

It is impossible to have a lasting monetary union that is not also a fiscal union, part of one State, with common taxes and a common budget.  However Ireland’s Euro-fanatics pushed us into the Eurozone against all the economic arguments.  They were impelled by their zeal to help build an EU superstate led by Germany and France, without any national democratic control.

Such a construct would inevitably lack the mutual identification and solidarity between its members which would sustain transfers from the rich countries to the poorer ones sufficient to compensate the latter for loss of their capacity to run independent budgetary policies or restore their economic competitiveness through currency devaluation.

It was profoundly irresponsible to abolish the Irish pound in order to join a monetary union with States with which we did only one-third of our foreign trade, while simultaneously halving interest rates at the height of an economic boom.

That made things “boomier”, as Taoiseach Bertie Ahern put it. It set us on the borrowing binge that followed, and the catastrophic course Ireland’s Government has since taken with its Banks.

It is the grand panjandrums of Irish Euro-fanaticism: Peter Sutherland of Goldman Sachs, Garret FitzGerald, Alan Dukes, Pat Cox, Brigid Laffan, Brendan Halligan, Ruairi Quinn and David Begg, who ultimately impelled us to surrender our political independence and democracy in the Eurozone.

As influential, although their names are unknown to the public, are the “career federalists” of Ireland’s Foreign Affairs Department in Iveagh House, who form the policy and write the speeches of successive Foreign Ministers. They are keeping their heads down these days and are happy to let the Department of Finance take the rap for our current economic debacle.

However it is they more than any other element in Ireland’s civil service who have steered our ship of state on to the rocks.  Cheering them on throughout have been uncritical elements in our media, above all in the editorial office of the Irish Times.

There is deep irony in the fact that their zeal for ever more EU integration has turned Ireland into a bomb inside the “infernal machine” of the Euro-currency, hastening its inevitable demise, and in the process possibly plunging much of the world into the second phase of a W-shaped recession.

Henceforth we should be more critical of what these people say when they enthuse for ever “more Europe”.

Anthony Coughlan – (01) 830 5792

Emmett O’Connell – (051) 565 844


(First published on Indymedia.ie)

The Consequences of Monetary Union (1972)

The financier and businessman Emmett O’Connell, formerly of Aminex and Eglinton Oil and still successfully engaged in the international mining business, has long held the view that abolishing the Irish pound and joining the eurozone was the biggest policy error ever made by the Irish State. The Greek crisis and its drastic implications for the euro-currency, interwoven as it is with the crisis of the Irish public deficit and banks, seems to be confirming this daily before our eyes.

Linked below for your information is a facsimile of a pamphlet☚ which Emmett O’Connell wrote in 1972. It sets out why joining a European currency union would not be in Ireland’s best interests.

[Also linked below: a Podcast audio extract☚ of an interview with Mr. O'Connell by George Hook on this subject, on NewsTalk106fm, Monday 10th of May]

This was one of a number of pamphlets published at the time by the Common Market Study Group, of which the undersigned, the late Raymond Crotty and Mr Micheal O Loingsigh of Tralee were key members. The Common Market Study Group was the principal centre of intellectual criticism of Irish membership of the EEC in the Accession Referendum of May 1972. Central to such criticism was the belief that what was then called the Common Market was intended to lead on to a European Monetary and Political Union under the political hegemony of what Dr Garret FitzGerald recently termed “The Big Three” EU Member States – Germany, France and Britain – as has broadly been happening since.

Emmett O’Connell repeated his criticisms of EMU at the time of the 1992 Maastricht Treaty which led to the establishment of the euro and he has written occasional press articles on this and related economic topics over the years. The core of his argument is the section of his pamphlet setting out “The case for Sovereign Money” on pages 12-14, as well as pages 22-26. The validity of what he wrote then, he believes, is confirmed by the current crisis of the eurozone and the fact that Ireland is unable to restore its lost economic competitiveness because of the abolition of the Irish pound and with it our ability to have any control over either the currency exchange rate or interest rates with a view to maximising Irish development and employment.

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