What will be the price of a further bail-out for Ireland? The end of their autonomy and tax crucifixion. Today, we have heard a number of voices from the European Union opine that Ireland will have to become a "normal" tax country if it wants further monies from other members of Euroland.
The eurozone has become a trap for peripheral countries. They are crushed by debt, unable to compete against the core, saddled with austerity and facing long-term stagnation.
The external view divides Euroland between the core and the periphery. Current policies will not allow the periphery to compensate for it slack of competitiveness and the result is a debt deflation trap. Ireland is clear evidence of this.
Enter the insidious powers who will use the crisis to further particular goals. The Commission and the core countries have promoted tax harmonisation and minimal rates to neuter fiscal competition. Ireland may find that it has to drink a poisoned chalice: sacrifice the competitive elements required to crawl out of its hole in return for remedial action on its finances.
The European Commissioner for Economic and Monetary Affairs, Olli Rehn, has said that 'it is a fact of life' that Ireland will no longer be a low tax economy over the next ten years 'after what has happen
But he 'didn't rule out any option' since we know that 'Ireland in the coming decade will not be a low tax country, but it will rather become a normal tax country in the European context.'
Given the exposure of British banks to Irish debt and the damaging roll-over fo a liberal ally, should we not entertain the possibility of drawing the Republic back into the sterling area, or recommend dollarisation. Both options appear to be more palatable than the political crucifixion embarked upon by the Eurofanatics in power, who prefer the impoverishment of their people to losing face on a shared currency. The madness of Europe persists, extends and deepens.