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EU leaders must change tack to deal with mounting Euro crisis – Doherty

23 July, 2012 - by Pearse Doherty TD

Sinn Féin Finance spokesperson and TD Pearse Doherty, responding to speculation that Spain may need a full bail-out, said tonight that EU leaders had to change tack to deal with the mounting Euro crisis. Deputy Doherty said the austerity policies being advocated by the EU and supported by Governments like our own were not diverting the crisis and were in fact lengthening it and adding to market fears.

Deputy Doherty said:

“From the beginning, Sinn Féin has said that the Irish and European economic crises must be dealt with through growth friendly fiscal consolidation measures to reduce deficits, political-led stimuli and restructuring of banking debt. Instead, EU leaders and the Irish Government have pushed a focus on bailing out banks and the implementation of austere budgetary policies such as taxing low earners and slashing public services.

“No Government in Europe has shown the intellectual capacity and leadership to deal with this crisis. Instead we have seen groups of leaders meeting and deciding to pursue either the same policies or similarly damaging ones. The ESM, the latest idea from the EU centre, and one designed to further help the ECB to avoid doing what should be its job as the lender of last resort, will not be able to cope with further states requiring full bail-outs.

“EU leaders and our own Government, in failing to find the right policy have endangered the economies of all European states and indeed the social European project as it was originally conceived. The markets can see this, and while we should not be led by the markets in all things, they should in this instance provide a jolt of economic reality.

“EU leaders must change tack to deal with the mounting crisis in Spain and I call on the Irish government to speak up for an alternative economic strategy and begin implementing one at home.” ENDS

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