The British right praised Irish policy before the recession, during the recession and continue to praise it now. They have been consistently wrong.
Free market think tank Reform has named Irish finance minister Brian Lenihan “Reformer of the Week”. Their reason?
“… for announcing a further €4.5 billion in spending cuts and €1.5 billion in tax increases in order to maintain the country’s fiscal credibility.”
This is despite the economic disaster that has been unfolding in Ireland over the past two years. In 2008 Lenihan decided against a fiscal stimulus and instead tried to balance the budget through spending cuts and tax rises.
This strategy has proved self defeating as the welfare bill (despite cuts) continues to rise and tax revenues continue to underperform.
There are now renewed market fears over Irish growth and its ability to service its debts. And yet, despite the mounting evidence that Irish policy is failing, the British right continues to heap praise on their policy choices.
Before the recession George Osborne called Ireland as a “shining example of the art of the possible in economic policy making”. Even as the IMF warned that the Irish economy was “unbalanced”. Even after the recession hit and the long series of austerity budgets began, Tory politicians and bloggers continued to be supportive.
In December last year Guido Fawkes wrote that, due to their austerity budgets, Ireland “will bounce back faster than the UK”. Nearly one year on UK unemployment is at 7.7 per cent whilst Irish unemployment stands at 13.9 per cent. Whilst the UK enjoyed decent growth in Q2 and Q3 this year, Irish GDP contracted again in the second quarter.
The British right praised Irish policy before the recession, during the recession and continue to praise it now. They have been consistently wrong.
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23 Responses to “Why do the right continue to support Ireland’s disastrous economic policies?”
Matt Jeffs
RT @leftfootfwd: Why do the right continue to support Ireland's disastrous economic policies? http://bit.ly/aiLjoQ asks @DuncanWeldon
william
THe diference between the UK and Ireland is that within the euro it would have been impossible to finance the Irish borrowing requirement.Have you not noticed the thoughts of the German constitutional court?The imbalance of the Irish economy was down to incompetent and corrupt politicians.At lest Brown was merely incompetent.
Patrick
Duncan, read this: http://www.irishtimes.com/newspaper/opinion/2010/1108/1224282865400.html?via=mr As an irishman I fear its too late now I’m afraid…
Duncan Weldon
Patrick,
I read that. It’s an awful mess.
I believe the Euro and the ECB have been a disaster for Ireland. I also suspect that the low/negative real interest rates in the decade before the boom explain the vast increase in FDI and the relocation of companies to Ireland far more than the low corporation taxes praised by the UK right do.
I think some form of partial default is now the only realistsic option.
Samuel Tarry
RT @shamikdas: Why do the right continue to support Ireland's disastrous economic policies? http://bit.ly/aiLjoQ asks @DuncanWeldon