From Peoples’ News: News digest of the Peoples’ Movement, No.38, Nov. 24, 2010:
Loss of sovereignty
ALL the crocodile tears being shed for the current episode of “sovereignty loss” would be a bit less nauseating if they were accompanied by even a modicum of recognition that when this country’s authorities adopted the euro they thereby abolished national control of interest rates and exchange rates. In doing so they abandoned the essential economic instruments of sovereignty.
Remember the key question asked in last June’s Regling Watson Report on the banking crisis: “Was it a coincidence that Ireland’s economic fundamentals began to deteriorate when Ireland joined the euro area?” And their answer: “In a monetary union, the challenges for policies becomes even greater, as monetary conditions cannot be influenced directly and the (nominal) exchange rate is no longer a policy instrument.”
So rhetoric about “the state of the nation,” delinquent bankers and developers, the credit crunch crucifying “Ireland Inc.” and trade union leaders calling for jobs and investment is so much hot air on cold winter days if it ignores this reality.