The American Interest magazine: “Give Ireland Back To The Irish”

Via Business Insider, Walter Russell Mead writes at The American Interest magazine – Give Ireland Back To The Irish:

France and Germanywant Irish taxpayers to pay the full and bitter price for the destructive folly of European bankers. And by fair means or foul the two largest powers in the EU want to force Ireland to give up its low corporate tax rate — widely seen in Ireland and around the world as one of the few tools that country has to promote its economic recovery.

It is rare to see power plays as naked and as brutal as this one in post-Soviet Europe. German and French banks went wild with euro-denominated loans to countries on the EU periphery during the last decade. Housing booms in Ireland and Spain, and the reckless overspending of the Greek government were made possible by feckless bankers. True, Irish home buyers (including speculators and flippers) along with real estate developers took out sketchy loans, but it takes two stupid and greedy parties to create a bad loan…

The German government — in a country whose badly managed banks have gotten themselves in deep trouble in Greece, Spain, Portugal and Italy in addition to their imprudent Irish ventures — does not want to face the real state of its banking system and pay the high costs of restructuring.

Germany in other words is living in denial — and sending Ireland (and the other peripheral euro economies) the bill.

This is what powerful countries do: they export their domestic problems to other countries and stick hapless foreigners with the bills for their own mistakes…

It is politically unrealistic and morally wrong for Irish taxpayers to bail out private lenders in full, and the EU will not prosper unless the interests of peripheral countries like Ireland are taken more fully into account. On corporate taxes and bondholder haircuts, Ireland is well within its rights to fight hard for its position…

Read more.

This entry was posted in Accountability, Bankers' Bailout, Budget, Civil Rights & Liberties, Debt Default/Restructuring, ECB/IMF, Economy, Elections, EU, Geopolitics, Housing Bubble, Independence/Nationalism, ireland, Irish America, Solutions, Taxation and tagged , , , , , . Bookmark the permalink.

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