Meeting Troika targets is no guarantee of recovery
October 25, 2012
Speaking in response to the conclusion of the eighth Troika review Sinn Féin Finance spokesperson Pearse Doherty said “meeting the Troika programme targets would not guarantee economic recovery.”
The Donegal South West TD also warned that “without a deal on the banking debt our ability to exit the programme next year will be much harder.”
Deputy Doherty said:
“For the eighth time the Troika has given the government top marks for meetings its programme targets. However meeting the Troika programme targets will not guarantee economic recovery.
“Unemployment remains unacceptably high. Emigration is on the rise. The mortgage crisis is growing bigger by the day. Low and middle income families are struggling to make ends meet.
“Across the state people are fearful that December’s budget will make things worse. The government may have convinced the Troika that all is well but 77% of the electorate no longer have confidence in this government. This is because they know that the policies of austerity are not working.
“In our meeting with the Troika during the review they were clear that while the programme targets were being met this wasn’t the same thing as the programme working for economic recovery.
“Sinn Féin remains convinced that the policies of austerity contained in the Troika programme are strangling the domestic economy and blocking any return to growth.
“Exiting the Troika programme next year is hugely dependent on the government securing a deal on both the promissory note and the legacy debt held by the pillar banks. There was no indication of progress on the promissory note during our discussions with the Troika.
“In fact the mood music on this issue was more negative than during any previous meeting. Without a deal on the banking debt our ability to exit the programme next year will be much harder
“It is telling that the government is talking to the Troika about forms of assistance on exiting the programme. Clearly any additional financial assistance with conditions would be an extension of the existing programme.
“The fact that the government is having such discussions indicates that it is worried that a full return to the markets in 2014 may not be possible.”