Ireland’s exit from the bailout – the first of the Eurozone countries which have signed up to a rescue package – is a positive event because it proves that it is possible to put an end to the relentless audits and restrictions imposed by the lenders.
It also sends the message that when the political system and the people decide what they want, then they can escape the crisis. That is perhaps our most significant difference with Ireland, where the political parties were not split into pro-bailout and anti-bailout factions, despite their differences, while the unions proved to be much more flexible and did not engage in repeated general strikes, but rather they chose to ensure the most amount of employee right they could through deals.
Unfortunately and contrary to popular belief in Greece, the exit from the bailout will not mean an end to the austerity. The Prime Minister may have claimed to have restored the national pride of the Irish, but the politics followed will not contribute to significantly restrict the deficits.
Anyone cultivating the illusion that is needed is a denunciation or an exit from the bailout to return to… paradise, should bear this in mind. Unfortunately, in the world of the globalized economy, the fiscal reform is necessary, but not a sufficient condition for the country to get back on its feet.
The real economy must also be kick started on competitive terms, so that new jobs can be created. This is something that also has not happened in Ireland, resulting in thousands of people – especially the young – to abandon their country every year in search of a better future elsewhere.
As long as Europe and especially the prosperous north, does not realize that the poverty in the south is also a problem that will affect them as well, the return to the market will not be enough to rebuild the economies in the south at the necessary rate. Unfortunately for us, the Europeans are not convinced by the anti-bailout speeches and empty threats.
The easy promises that sound good to the people’s ear who have been struck hard by the crisis, but are not followed up by specific actions and changes that will have us get back on our feet, will quickly prove to be empty promises. The example of Ireland, a country much more competitive than us and with a must more consensual political system than ours, is absolutely indicative of the hardship we still have ahead of us…
TO VIMA
