Sunday, February 20, 2011

Should Ireland join the Sterling zone?

That is the thought of aviation entrepreneur, Ulick McEvaddy, in the Irish Independent. I have to note that Mr McEvaddy was formerly part of the No campaign, so his opposition to the EU and its doings is nothing new, but his suggestions to any new EU negotiating team coming out of the next Irish government has some sense.
"I don't think we're in a powerless position. I think our European partners have to treat us with the respect we deserve. We have alternatives. If we look across the water to our biggest trading partner, Britain, and talk to the Chancellor of the Exchequer, he might welcome us back into the sterling zone if they [the EU] screw around with us too much," Mr McEvaddy said.

Giving his own view on what the incoming government's negotiating team should tell our partners in Brussels, he said: "The option [in relation to the EU] is 'look guys, we're not happy with the way you're treating us. We're going to leave the eurozone'. Ok, it's going to be a bit of a mess for a while, but the Chancellor of the [British] Exchequer would write the cheque for us in the morning because we're actually his largest trading partner.
If nothing else it would be a decent negotiating position. After all at this point what has Ireland got to play with, what can the negotiators have in their briefcase other than hoping for goodwill. Goodwill that is in precious little evidence when one looks at the French approach to the Irish level of corporation tax.

Would Britain help out in these circumstances. I would think so. After all, George hasn't seemed to have any problems writing out large checks to the Irish PM in recent months. And British banks would be delighted as they, more than anyone are exposed to the Irish debt crisis.

1 comment:

banned said...

It would be nice to be able to accept Irish Punt notes again, just as we do Scottish ones.