I have mentioned, mainly in del.ic.ious comments, the real possibility that in my opinion Ireland might be expelled from the European Union. I was, therefore, intrigued to know that Wolfgang Munchau raised the same issue in the FT this morning. He said:
within a couple of weeks, the chances of Ireland ending up outside the EU have turned from zero to a distinct possibility. The same goes for the Czech Republic, another potential non-ratifier. I do not want to get into the legal details of how a country's departure from the EU could be accomplished. Suffice it to say that it can be done within European law as long as there is political will.
What strikes me the most about this extraordinary turn of events is the perception in Ireland that a break with the EU would be no big deal. I received a large number of letters from Ireland last week from readers who steadfastly maintain that the country's economic success had nothing to do with the EU and everything to do with domestic policy - in particular with low corporate taxes and skilled labour.
The view expressed by those correspondents is as wrong as it is revealing.
I absolutely agree with him. There is an absurd belief amongst the Irish that tax innovation has created their wealth. That is most certainly untrue. What their tax innovation did was steal taxes due to other countries; worse, it contributed to poverty elsewhere. That is at best only a measure of relative wealth, and a decidedly poor one at that.
Ireland broke out of its pre EU sloth for two reasons. First it had an enormous army of well-qualified young people, whose education was paid for by the State. Second, the EU provided it with the grants and subsidies to create the infrastructure on which it could compete.
The difficulty for Ireland is if they are expelled from the EU they will be denied access to the market which has provided them with their wealth. I think it fair to say that they should expect their economy to fall off the age of the Cliffs of Moher if that's what they do. And I wouldn't wish that on anyone.
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Any opinions on what really motivated Declan Ganley and Ulick McEvaddy, of Libertas fame, Richard?
If you haven’t heard of them, the pair make interesting reading.
you would imagine that some of the other members might choose to protect them from the bully boys of Europe – otherwise what does it say for democracy.
Rob
I suspect we’ll never know who bankrolled Libertas. I think we should. Tax Justice Network is open about who finances it.
And Alastair, if someone votes to leave the club is it unreasonable if they are asked to go?
Richard
Richard
To be fair the people of Ireland did not ‘vote to leave the club’. So they should not be asked to leave.
The sentiment expressed by Mr Munchau’s correspondents is a minority one in Ireland. Most people recognise the extent to which the EU paid for the infrastructure upgrades and that Irish membership of the EU is a key reason that US multi-nationals choose to locate in Ireland alongside the young, educated workforce and its reprehensible tax policy.
Although I believe my compatriots made the wrong choice for a variety of different reasons the fact is that the EU has a democratic credibility problem right across the continent. If the Irish are pushed out now, it will be manna to those regard the EU as a self-serving bureaucracy.
Its not true to argue, as many in Brussels do, that 1m Irish no-voters are holding 500m others to hostage. The fact is that other populations would have voted ‘no’ had they had the opportunity so to do.
I’m a great supporter of the EU project. Its been a force for economic growth and an inspiration to democracy and transparency among aspiring members on its borders (compare this to Central America). But we’ve got to admit that Brussels need increased legitimacy and connections with the people. Expelling Ireland will just look like revenge.
Colman Stephenson
Richard – what planet are you on! Ireland voted in a refurendum to reject the EU constitution (aka lisbon treaty). Nothing in that about wanting to leave the EU. Don’t you think democracy deserves a bit more respect?
Alastair
I am respecting democracy. If 26 out of 27 members of a club vote for a constitution then I think it is democratic for them to get their way and for those who do not want to play by the same rules to go and set up their own club elsewhere
Richard
its democratic if all members put it to the vote – only ireland had that for the revised constitution – but if you recall not all members did vote to accept the constitution. Put it another way – we are agreeing over the principles, but you seem to be missing the important facts.
I think you ignore the fact that we are a parliamentary democracy.
I think you might reflect on the fact that at the last election all major parties offered a refurendum on the proposed EU constitution, and that two of those parties have since backtracked. Does not sound very democratic to me.
All politics is local…or should be…the one size fits all crowd is illegitimate