Even the Troika Think Irish Government Wrong to Accept Bank Bailout and Austerity!

International Monetary Fund’s mission chief for Ireland, Ashoka Mody, was a member of the troika team that put together the bailout package for the Irish banks.  Now, three years later, he says that his troika partners’ – ECB and EU Commission – imposition of the murderous austerity policy which ensued, was “analytically, practically and institutionally wrong”.

Furthermore, in a criticism that the thick-skinned and even thicker-witted Irish coalition Government will find hard to ignore, he states bluntly that the bondholders should have been burned rather than the citizens of Ireland sacrificed to save the banking system’s illegitimate debt – the option, incidentally, that Lyndon LaRouche strongly urged at the time.

On the subject of burning the bondholders or massive debt write off – in effect a Glass-Steagall policy – he said “If that system is not an integral part of I think Europe is tying its hands in a very deep economic way with enormous social repercussions”.  Adding that “Ireland had the basis for showing some leadership in Europe and that basis for that leadership would have been to say, ‘look, there’s more than one way of doing this and for our sake and for Europe’s sake, let us show you that way to do it’”.

Indicating a sense of bemusement over Irish Government policy, he challenges: “If Ireland said, ‘you know we really need to do this because we think it is an economically sensible thing to do,’ what exactly was the alternate position of the European authorities?  Would they have said, ‘in that case we are going to let you sink’?” he asked.

Assessing the damage that has been done by these idiotic policies and the prospects for the future under such conditionalities, Mody is not hopeful for Ireland’s future economic growth.

“It is unreasonable to expect Ireland to grow at more than 2 per cent a year, he said, and the fact that the “bounce-back” from a deep recession is taking so long to occur “implies that the long-term growth prospects have weakened”.

“It is not clear how Ireland is going to bounce back into any reasonable growth for a period of time,” he said.


This entry was posted in Austerity & Bank Bailouts, Bail-in Policy, Glass Steagall, Ireland and tagged , , , , , , , , , , . Bookmark the permalink.

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