How would a eurozone "economic government" affect Ireland?

Permabear

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sinnerboy

May make perfect economic sense but poor political sense . I could not see a single EU related referendum ever being passed in Ireland again - no matter how many times we were asked again . It would benefit us over the long term but politics is so often about the short term .

Imagine a sore public sector - or any sector for that matter going through "the pain" of an economically prudent and in the long term sustainable adjustment - and a referendum was upon us . How easy would it be for Declan Ganly to raise opposition . People want jam today .

Permabear

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sinnerboy

Thats one reality . Another is that local demagogs would have a field day . Whether an "economic government" would also have implications for taxes, specifically corporation tax or not the allegation would be made - and believed . Remember the effective disinformation campaign during Lisbon ? Even recently , the proposal for an EU peer review of budgets had Cowen having to rebut suggestions on CT .

dan_d

Probably would impact taxes. Probably would make a laughing stock of Ireland's politicians.
Why do you think an EU related referendum would not pass ever again in Ireland?? Surely in this situation we wouldn't even get to a referendum...the question would just be decided, treaty implemented, whatever.
It might be a good situation for us as a people, in terms of quality of life and services for taxes paid, but it would not benefit our politicans at all as they would effectively just be puppets. Then again, in some cases this would be a good thing....

whatawaster

donegalfella wrote: »

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Out of curiosity, why do you say that?

Permabear

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ei.sdraob

donegalfella wrote: »

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@donegalfella

im starting to think that default + devaluation is where we are heading and deserve (i am hedged either-way so bring it on )

there is a real unwillingness and outright resistance to address the issues, and alot of people are in denial at the state of things altogether

you cut public sector wages and welfare by 20% and theres war
you devalue by 30% (did someone say euro lost 25% of its value in last few months ) or more and by the time the common sheeple cop on to the fact they getting shafted ...

the government keeps making noise about "severe austerity" but the figures speak for themselves, most of the cuts were in capital expenditure, i wonder how long will the markets believe the crap or keep being distracted by greece etc

there was a presentation by Niall Ferguson and video here i was reading today,
> http://www.businessinsider.com/niall-ferguson-sovereign-debt-2010-5#-1

quite interesting since there was only one instance when a state cut its way out of a hole, since we cant devalue that only leaves the default option...
or worse we could endup experiencing all three (since our government has so far pursued all worst possible options):
* cuts CHECK,
* devaluation CHECK and
* default hi Morgan Kelly

Permabear

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sinnerboy

this?