Irish debt crisis requires political as well as fiscal response from EU

Posted by Bronwen Maher on April 04, 2011 at 09:41 AM

This week in Strasbourg Irish MEPs will be briefed by EU Commissioner for Economic and Monetary Affairs Olli Rehn, this meeting will give us an opportunity to discuss the Irish debt crisis. 

My view is that the lower paid must be protected, and that the Irish debt crisis requires a political as well as fiscal response from the EU.  The Irish Government cannot increase the minimum wage without the approval of the IMF and EU, however targeting the minimum wage and the lower paid will have little impact on the Irish debt crisis, and do absolutely nothing to stop a wider Eurozone crisis.  But will cause severe hardship and untold damage to the lower paid and their families.  The question now has to be asked about the ability of the Irish people to carry this burden in the absence of a strong economy hampered with ever growing emigration and decreasing GDP.

The bailout must not tie the Irish Government’s hands when it comes to protecting the lowest paid.  It would be unconscionable for the EU to stop the Irish Government’s plan to put the minimum wage back to its previous level. Social equality is at the core of European policy and research has shown that more equal societies are also the more prosperous, the EU approach to Ireland’s debt crisis must also include a commitment to social justice.

The clarity on the future structure of Irish banking is welcome, next we must work to achieve income parity and a more equal society, and this must be at the heart of the Government’s and the EU’s long term goal for Ireland. How can any sane society, in justification for handing over massive amounts of monies to bail out irresponsible banks, link the deal to imposing stringent cuts on vulnerable families who are finding it impossible to cope?    

Permanent link | Categories: