The Nobel Prize winning economist Paul Krugman has said that Irish citizens should vote no in today’s referendum on the Fiscal Compact Treaty.
“I’ve thought about it, it’s hard. I would say vote No,” the New York Times columnist told BBC Radio 4 on Wednesday morning.
Today the Irish will take to the polls for a referendum on a fiscal compact that is designed to impose discipline in government finances.
Krugman dismissed claims that a no vote would annoy the Germans and see Ireland cut off from the Eurozone.
“At this point the Germans need to face the reality that this cannot work and that the Irish, who’ve been such good soldiers in this crisis, if even the Irish say no then that would actually send a helpful message,” he said.
He added that austerity was a “deeply destructive policy” which is “failing dismally”.
“The whole intellectual framework has been tested to destruction in the Eurozone,” he said on the Today programme on BBC Radio 4.
The Princeton professor criticized the single European currency.
“European currency union was a mistake since the day the Maastricht Treaty was signed,” he said.
The treaty is expected to pass by a six to eight point margin according to opinion polls but many are adopting a wait and see to the result given the anger that politicians are encountering at the doorsteps at the shape of the economy.
“It should pass, but it may not if that anger translates into votes,” said former Irish Times columnist Eddie Holt , "It may be a lot closer than people think".
Ireland’s good weather is expected to boost turnout as well, which may help the 'no’ vote.
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Switch to the desktop site to post a comment.Bythebay | Jun 01, 2012, 03:56 PM EDT
Krugman and the New York Times wrong again!!
Bythebay | Jun 01, 2012, 03:53 PM EDT
EamonnDublin, people in the US have no clue about what's going on in Ireland. Irealnd/North has said he lives in the US, emigrated to the US in the 1980's, is from Dublin, East Leinster ? and comes to Ireland on holiday where he sits at Heuston Station or goes to the library at the end of the boardwalk and fights with immigrants for WIFI. Also EamonnDublin, they're not called "cabs" in Dublin, they're called taxis. Cab is something else.
EamonnDublin | Jun 01, 2012, 11:37 AM EDT
"ByTheBay" - Why are you so obsessed with the thought that you are the only one who lives in Ireland? Why do you think people would be bothered to say they live in Ireland if they actually live in the USA or Britain? Are you demented? One answer at a time, please. Éamonn, Dublin, Ireland.
Bythebay | Jun 01, 2012, 11:15 AM EDT
IrelandNorth, you live in the US and aren't aware everyone overspent.
IrelandNorth | Jun 01, 2012, 05:53 AM EDT
Austerity is all very fine, for those who did the overspending. Unfortunately, a reverse distributive injustice prevails, where those who didn't overspend are obliged to bail-out the banksters and their political apologists who did. The current centrist Irish Government is generously paid by an overburdened Irish taxpayer to represent Ireland's interests in Europe. More often than not, they represent Europe's interests in Ireland. (Merkel ain't gettin' my Confirmation money!) Krugman makes sense to me - and I voted NO! Would like to see him President over here - as well as in The States!
casualMBA | Jun 01, 2012, 12:18 AM EDT
Odd timing to weigh in on the issue
BurrRobson | May 31, 2012, 06:47 PM EDT
First of all Paul Krugman is a joke among intellectuals. Remember he is the idjit who wants to legalize post birth 'abortions' up to one year. It doesn't take a genius to understand that when you've spent years overspending, you have no choice but to impose some type of austerity. It will either come now by choice or or later by desperation. Someone has to realize the problem won't be solved by continuing to spend and try to overcome by overtaxing. Anyone say rebellion? Krugman only got his Nobel price due to political connections. He hates the free market; he is an elitist who is liberal with the thought in mind that he will benefit from the 'little people.' He is a farce.
seanomelbourne | May 31, 2012, 06:45 PM EDT
Bear022013 sure has a sore head and a bigoted point of view to boot!!
Seanmor | May 31, 2012, 06:16 PM EDT
Paul Krugman makes a whole lot of sense.
EamonnDublin | May 31, 2012, 05:58 PM EDT
I voted "NO". But I fear I wasted my time - "Yesmen" will win. And, even if the result happens to be "No", our political shower will rain on us, tell us we got it wrong, and make us vote again. It would be pure comedy to see a "No" result and see what passes for a government trying to wriggle out of their lies whilst making us vote again. Éamonn, Dublin, Ireland.
Dubnorth | May 31, 2012, 05:56 PM EDT
Krugman is a Keynesian wacco, who only got his Nobel Prize because he is a Liberal die hard who hates capitalism ,and more importantly was an ardent critic of the Republican party. Same reason Obama got his nobel Prize, he wasn't George Bush.
Bythebay | May 31, 2012, 04:56 PM EDT
Americans know nothing about the European Union, Ireland or the Euro although in their salf-absorption and inflated egos they think they do. Klugman's voice doesn't reach Ireland, it's obliterated properly in the ocean winds.
rgray222 | May 31, 2012, 03:58 PM EDT
Why do you keep using this guy in your stories, Krugman may been the recipient of a Nobel Prize and teach at a prestigious school but that does not make him any less of an idiot. This is the man that said we should tell the world aliens are invading so we spend money to protect ourselves, this is the same man that said Obama should hire people to dig ditches and hire more people to go behind them and fill them back up. Spending money is a good thing as far as krugman is concerned. The idea of saving and paying your bills and not borrowing is alien to him! Makes no difference if you are liberal or conservative......this man is still an outright idiot! Everyone knows this but not many people will take the time to tell you!
eiriamach | May 31, 2012, 03:58 PM EDT
Uh oh! Here's another fanatic calling himself an American and presuming to say what "we" Americans "learned to ignore." Bully -dog- alert! I'm not sure how Krugman's anti-austerity approach fits a nation the size of Ireland, but I do know that he has followed the Euro closely and his predictions are better than others'. I'd give a hearing to Krugman and ignore the American bully.
Bythebay | May 31, 2012, 02:25 PM EDT
bear022013, and after you left they had a good laugh on you.
Bythebay | May 31, 2012, 01:50 PM EDT
bear022013, it has nothing to do with asylum seekers or immigrants to Ireland.. There has been a drugs problem in Ireland and Dublin and Galway and Cork and.... for decades, Veronica Guerin was killed by Irish drug lords. The gangs are making big money from it. Mary Robinson got out before the Celtic Tiger got properly fueled. She moved to New York in the 90's.
FastEddy | May 31, 2012, 12:26 PM EDT
I agree with Krugman, rarely. On this I do agree. Ireland could and should work out a much better deal. ..... >>> The EU mandate that Ireland raise taxes to accommodate these "bailouts" of g'ment and Irish banking is or should be a deal breaker for the Irish citizenry and the Irish economy. <<<
BulldogMania | May 31, 2012, 11:45 AM EDT
Krugman is usually WRONG on issues of the US economy...we are $16 TRILLION dollars in debt. Who is he to tell the Europeans what to do...in this particular story the Irish. I'm an American, and long ago we learned to ignore this radical far left liberal.
Liam3494 | May 31, 2012, 10:17 AM EDT
Krugman should stick to his own economy and leave the European one to those who live and work within it. He is off the mark when it comes to European issues, and as an economist he should realise that one size does not fit all. The austerity measures are necessary in the short term, with the next stage far more important as the Eurozone will be looking for growth and job creation, both of which require the immediate fiscal belt tightening to ensure a future.
wjb1tex | May 31, 2012, 10:03 AM EDT
Krugman also gave great advice to Enron when he was their financial advisor.
Murph46 | May 31, 2012, 09:51 AM EDT
Of course he says no,he doesn't have to live with the consequences.
francisquinn | May 31, 2012, 09:39 AM EDT
IF Krugman says "Vote NO"....I would urge a YES VOTE....he is a big deficit hawk....spend and spend and tax and tax....he belongs in Russia or Cuba....maybe even N.Korea..
pndirishandprou | May 31, 2012, 09:38 AM EDT
Krugman is a brilliant economist and I agree with most of his assessments of the the US economy. However, he has been mostly wrong on Europe and the euro. This time Europe doesn't care about the Irish vote, ESM will go into effect with only 12 of the 17 euro countries approving it. An Irish "NO" vote is a shot in the foot. The Irish are smarter than that.
Laochra | May 31, 2012, 09:32 AM EDT
Krugman is right on the money. A unified currence without a unified political system simply cannot work. Even the economists who came up with this hairbrain idea stated as much. Either unify politically, in which case our country becomes a footnote in history, or leave the euro and turn the EU into an economic zone, sort of like a NAFTA with a NATO component.
LoyalCitizen | May 31, 2012, 07:50 AM EDT
He has been consistently closer to the truth than the traitors who steal from the sick, the handicapped, the unemployed and old age pensioners to hide their economic mistakes.