Disgraced Prime Ministers Bertie Ahern and Brian Cowen have been accused of handling Ireland’s Celtic Tiger economy like ‘intoxicated joyriders’ by a leading academic.
University of Limerick founding president Dr Ed Walsh has slammed the former Fianna Fail leaders for their part in Ireland’s fall from the world’s fourth most competitive economy to its current ills.
Speaking as he delivered the annual Michael Collins oration at Beal na mBlath in Cork, Dr Walsh slated the pair for their part in the Irish economy’s downfall.
He also criticized the public sector as ‘flabby and over-paid, antiquated and dysfunctional’ and urged the government to sort out the welfare state.
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“The crisis that is convulsing Europe has its origins in the partisan management of the euro currency from the outset,” claimed Dr Walsh.
“Sustained low interest rates to facilitate a dominant Germany in the process of reunification were exactly what the overheated economies of Ireland and many other countries did not need.
“Bertie Ahern, Charlie McCreevy and Brian Cowen, with the economic insights of intoxicated joyriders, made no attempt to counteract this; but perversely poured fuel on the flames by incentivizing speculative building and borrowing.”
Dr Walsh claimed that Ireland was wrong to join the Euro in the first place as it immediately ‘lost control’ of its interest and currency-exchange rates and also opened the economy to a wave of cheap credit that has had disastrous consequences.
Now, he warned, Ireland has: No choice but to lower the standard of living, balance the national budget and try to negotiate concessions to the harsh and unfair terms imposed by the EU.
“I lay the blame on successive governments who, for electoral gain, undermined the fundamentals of the economy.
“They permitted uncontrolled expansion of the public sector, doubling the cost to the taxpayer. They dislocated central government by attempting to dispatch parts of it to favored regional constituencies.
“They eroded the tax base, appointed people of doubtful competence to public bodies, and ceded control in key areas to social partnership, resulting in public-sector wages rising to the highest levels in the EU.
“As a consequence Ireland is now on its knees just 11 years after it was ranked the fourth-most competitive economy in the world.
“Without a fair and restructured Eurozone deal, Ireland will inevitably slide into default.”
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Switch to the desktop site to post a comment.Towngate | Aug 23, 2011, 04:43 AM EDT
bogsidebunny: Spot on!
bogsidebunny | Aug 23, 2011, 04:33 AM EDT
There was never a truer statement made. These two idiots led the gluttonous, self-indulgent Irish down a primrose path during the early 2000s. They should be charged with treason and put away for the rest of their lives. But, as we all know, Ireland's "lads" cartel will cover for them and the general public's memory is short so those two gombeenmen will live out their days in luxury and banal pleasure whilst the Joe Soaps struggle.
JBRAFTREE | Aug 22, 2011, 05:02 PM EDT
Who dropped the ball first, Americans, or The Irish?? Many friends have suggested they shouldn't have gotten into the EURO in the first place.
nicgearailt | Aug 22, 2011, 02:07 PM EDT
rather harsh...I would suggest,incompetant...and partisan..it has always been an Irish failing...the partisan behaviour. it's a measure of how embarrased the educated of Ireland are about the disastrous events of the recent past ,when you consider that it was so lauded not too long ago.You have to lay it at the feet of those who were in" authority". Sad to see the pictures of the ghost towns in Ireland ,pictured in the New York Times today...that's reality for the good people of Ireland who live in those locations..it will be a while before Ireland gets back on track.Default ??I hope not ..the country has had enough bad news..Shameful politics...strong words from this significant Educator.
butlerreport | Aug 22, 2011, 12:09 PM EDT
like 'drunken joyriders'- Cowen WAS drunk. We let them do it and we deserve what we got.
Trealach | Aug 22, 2011, 11:41 AM EDT
Amazing - this is the same Dr. Walsh who praised Bertie Ahern when he was Taoiseach as "being the shrewdest and most influential leader the country has ever had". Talk about a betrayal.
LoyalCitizen | Aug 22, 2011, 11:27 AM EDT
Mr Dervan. Ireland never had a Celtic Tiger Economy, it was and will always be a complete fraud.
AengusOg | Aug 22, 2011, 10:18 AM EDT
Isn't leading academic an oxymoron?
Jamcelt | Aug 22, 2011, 09:35 AM EDT
They should both be banged up for 25 to life.