It’s a brave taoiseach that would abandon years of coaxing investment from the US, to begin to cultivate a closer relationship with the British. You might say that one of the critical differences between Greece and Ireland is that Ireland’s export industries(seeded with US capital) have far outperformed its indigenous industries. Nonetheless, Paul Allen argues that:
…with our relationship with the UK stronger than ever, at last there can be open discussion about the possibility of joining the Commonwealth or ditching the Euro for Sterling, without cries of treason.
Indeed, the question is — why can proud, successful and powerful nations, such as Australia and Canada, have no problem when it comes to benefiting from the Commonwealth and the resulting deep economic ties with the UK while Ireland has for years balked at the very idea?
John Kay’s argument warning of the dangers of a Scottish pound pegged to the Bank of England would seem to apply. Fiscal rules will and must apply whichever currency you peg yourself to… A return to British fiscal rule may just be a line too far [unless, of course – Ed]…