Ireland needs an EU Bailout but doesn’t like the Austerity attached to it and may reject the New Spending Rules

Posted by PITHOCRATES - March 3rd, 2012

Week in Review

Just when you thought the Euro was safe again (see Future of the euro again thrown into doubt after Irish announce referendum on new EU cash rules by Jason Groves posted 2/29/2012 on the Daily Mail).

Efforts to prop up the euro were again thrown into doubt last night after Ireland announced plans for a referendum on whether to accept new European spending rules…

Public anger over austerity measures is running high in Ireland and many observers were last night predicting a ‘No’ vote. That would not prevent the strict budget controls coming into force, but would leave Ireland  unable to access future EU bailouts…

Ireland has twice rejected plans for EU reform in referendums, only for the votes to be overturned under intense pressure from Brussels.

Eurosceptics in Ireland are expected to use the latest referendum to highlight Ireland’s dire economic problems, which have required a £70 billion bailout from the EU and International Monetary Fund.

Ireland giving away control over its own destiny to others due to intense pressure from an outside power?  My, how times have changed.  Once it took an occupying army to wrest their sovereignty away.  Now all you have to do is to get a nation to spend itself into debt and they will eventually hand you the keys to the kingdom.  Will they do it again?  Time will tell.

Again, the problem with the Eurozone is the lack of a political union.  But getting a political union of countries having such long and rich histories is not easy.  For if it were they’d already have done it.  But they haven’t.  And probably never will.  Unless countries step forward and agree to surrender their culture and identity.  And give control over their destiny to a distant central power.  Something that just doesn’t happen.  At least, not so far in the history of this world.  Where the trend seems to be definitely in the other direction.  Where autonomous regions of countries yearn for their independence from the countries suffocating their culture and identity.

This is the risk of excessive government spending.  You spend too much and you either ask for help.  Or wreak havoc on your nation by destroying its financial institutions with bankruptcy.  Neither is good.  But one is less desirable than the other.  Better still would be never putting yourself in between these two choices in the first place.  And the path there is that dreaded ‘A’ word.  Austerity.  For this we know for certain.  If Ireland had no debt Brussels wouldn’t be dictating terms to them.

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