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Should Ireland leave the Euro??

gerry28 · 2009-11-05 11:35:31

Hi, I was just listening to david mcwilliams on gerry ryan there. He was saying that most other countries (USA, UK, Sweden, Finland, ourselves in 1993 and others) when faced with a financial crisis like this devalue their currency. It sounded like a fairly good idea, but i'd say there is some major reason why it would not…

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#92 09-11-2009 1:38pm
dRNk SAnTA

Registered Users Posts: 777 ✭✭✭

Join Date: March 2002

Posts: 751

This is quite simple.

Ireland isn't the only small country in the euro, all the other countries have low interest rates too. The difference is that fiscal mismanagement by the government has given us one of the deepest recessions in the world.

Now, despite the economic horror show - we still have some things going for us like a strong export industry and relatively low national debt.

If we were to leave the euro, it would damage our export industry and drastically increase the cost of our national debt over night. De-valuing would then rob everybody of wealth.

De-valuing would probably be pretty handy for FF, instead of having to go through brutal negotiations with the unions to lower public sector pay - they could just cut the value of peoples current wages by 20%. But it's not fair to punish everybody just to help a few sections of society get out of jail.

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