By Michael Dwyer.
Government spending still outstrips revenue. The economy is showing no sign of strong growth. The banks are far from healthy and the recent noise from Newbridge makes us to wonder about other yet undiscovered holes in the financial system.
Some things have become clear from our experience of Troika control. Firstly that we would have been better served by an IMF only bailout. No IMF organised restructuring would have failed to write down debt or to burn partially or entirely bondholders. They would not have countenanced paying in full those who took a gamble ( I had nearly written “punt”! ) in the unfolding crisis and bought bonds at fifty percent of face value.
The ECB has been from the start not an ally, or even a friendly neutral, but actively hostile to Irish interests. We were to be the whipping boy, the poster child of moral hazard. Trichet should be retrospectively considered an enemy belligerent.
The Commission has succeeded in demonstrating its pompous incompetence, and its inability to actually pursue a policy to execution. Three years ago I wrote that the arrival of the IMF at least would be the catalyst for root and branch reform of protected classes and the licensed monopolies that run our professions. These reforms, explicitly demanded by the IMF, were in the purview of the commission, and yet the Law Library remains serene and untouched. None of the direly needed improvements in competitiveness in the energy sector, or communications have seen light.
Anyway, we are free again. Free to forge our own destiny. Free to make our way in the world. Free to manifest any other cliché of political rhetoric that pleases you. What we are not free from are is a duty to understand what it was that caused us to invite the Troika into our country in the first place; both the proximate cause and the cause in fact as our legal friends would say . And I suggest that for both you need look no further than down town Frankfurt.