P O’Neill on A Fistful of Euros has been at the papers already and picked up some deeply worrying signs… Not least this dire warning of a collapse in confidence amongst foreign investors from Shane Ross in the Seanad:
Nobody should be in any doubt that billions of euro left this country for overseas destinations last week. Presumably billions of euro are still leaving as panic is beginning to occur in the money and currency markets. That is an indication of the kind of precipice we are now going over. There seems to be a lack of recognition of this on the Government side of this House because it does not want to face the true facts. The facts are really very serious. I do not say this lightly but believe there is an increasing number of warnings. If anybody goes overseas, he will hear the view of the Irish economy and note it is very different from the one conveyed by Members of this House, the Government and everybody else in Ireland. We are living in a fools paradise and are very close to a disaster nationally.
That’s ominous for a number of reasons, not least because foreign investment has been a central feature of Irish Foreign Policy since the Premiership of Sean Lemass in the early sixties. But it may have implications for more than the Republic. Ireland a country that has benefited disproportionately from prolonged sunny macro economic weather stands to suffer more when it turns into a macro economic drought, no matter what policy Government’s hands. H/T Ciaran