At the Irish Times PwC Tax Summit yesterday, Irish MEP Brian Hayes claimed that instead of killing off the EU, Brexit has given it a new breath of life.
In July, the latest information about attitudes towards the EU from the Eurobarometer, showed that not since autumn 2004 has support for the euro been as high - 73%. And, of the 28 Member States, Irish views on the EU are now the most positive. Hayes claimed that it is clear that in an uncertain world, Ireland’s EU membership is recognised by ordinary people as an anchor and something positive.
The MEP believes that being part of the Eurozone core is something Ireland should strive for. He warns that this means getting Irish debt down well below 60% of GDP - Hayes thinks Ireland should aim for 40% within the next 10 years.
He reiterated that over the next three years the NTMA have correctly reminded Ireland that it must repay or restructure over €50 billion of debt. Hayes claims, however, that a decade of sustained growth, averaging out at 3%, would make a great difference in reducing the actual debt and the cost of servicing debt.
Speaking yesterday, Hayes said, "Making Ireland part of the Eurozone core would really help to position the country for future investment opportunities. EU countries within the Eurozone who are part of the core have no difficulty in attracting investment because they are regarded as safe economies. They are the countries that drive Eurozone policy making. Being perceived as a country with a sustainable level of debt and a strong public finance position makes Ireland even more attractive for inward investment. And also a country that can deal with shocks."
He added, "Being part of the core within 10 years would bring enormous advantages of economic convergence to Ireland. While we do not determine interest rate policy anymore - that is set in Frankfurt by the ECB - we can internally devalue in other areas such as wages price inflation, output or educational attainment, as a means of becoming more competitive. That’s the essence of a currency union. Competitive advantage is gained by becoming better than others, especially those that are similar in size or similar in economic make up. Also the core of the Eurozone provides the best possible advantages for our exporting future. The winning of new markets being so crucial in the post-Brexit environment."
Source: www.businessworld.ie
