Ireland had the chance to cut a new deal
with its bailout creditors and reduce
the country's debt burden back in 2011
but failed to capitalise on it.
That's according to Ashoka Mody, the
former IMF mission chief, who said that
the Irish Government reinforced the view
that Germany and Brussels have the right
to dictate internal economic policy of
member states.
Speaking on Newstalk's Lunchtime
programme today, he said: "Ireland fell
in with that culture, Ireland had its
opportunity to, not just for itself but
for Europe, in a way, Ireland in
accepting the premise that Brussels and
Berlin determine economic policy in
every country. Ireland fell in with that
premise and therefore perpetuated a
culture that this current Greek
government is trying to break."
Asked if the Ireland missed an
opportunity to strike a deal, Mr Mody
said "absolutely".
"There was a burden of debt that would
legitimately be declared as an odious
debt and this was not necessarily
because there was something unique about
this particular government but because
there had been severe and egregious
errors that it inherited," he said. "It
was on that premise that it won the
election and what the deal at that time
could have been, I don't know but it
should certainly have been a superior
deal,"
His assertions were rejected by Finance
Minister, Michael Noonan:
"I suppose when he was there and when he
was in a position to do something, he
didn't do much for us, so advice now
that he is no longer in a position of
influence, would be taken lightly," he
said.
Sinn Fein TD Peadar Toibin has said
comments today from the former IMF man
in Ireland have hit a nerve with
Minister Noonan and the government
because they are true.
"The comments today by Ashoka Mody have
clearly hit a nerve with Minister Noonan
and the government. This is because they
are true," he said.
"His comments that Fine Gael and Labour
squandered their mandate for change,
refused to win acceptance that the Anglo
debt represented an odious debt and that
they simply took their lead from Berlin
and Brussels are all true and Minister
Noonan and his colleagues know it. It
seems the IMF themselves and other
Troika members were taken aback by the
meekness of the Irish government's
stance on our debt and the austerity
regime. Minister Noonan's dismissal of
the comments by shooting the messenger,
Mr. Mody, is a flimsy attempt to
distract from the comments. As the
Eurogroup meet today, the government can
still develop a backbone beginning by
joining forces with the Greek efforts to
steer the EU away from a direction of
constant austerity and put in place a
plan to deal with the EU's debt
problem," said Mr Toibin.
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