Rehn’s ‘recovery’ remarks spark angry backlash
That’s the response of campaign groups to Europe’s economics commissioner, who welcomed the latest rescue programme for Greece by declaring its Irish version a success.
Commissioner Olli Rehn said: “In Ireland, the programme has worked and is delivering, so that thanks to the determination and resilience of the Irish people and their authorities, the country is recovering.”
However, his remarks were challenged by Social Justice Ireland director Fr Sean Healy, who said it was clear the EU/IMF interventions here were not working.
“According to the Government’s own statistics, the number employed is falling, poverty is rising even though the poverty line is lower than it was, unemployment is stuck at record high levels, inequality is growing, services in areas such as health, housing and public transport are being cut or their charges are rising and domestic demand is also set to fall substantially in 2012,” he said.
“The only people for whom the bailout is working are banks, other financial institutions and bondholders, who have been repaid in full at the expense of Ireland’s poor and middle-income people.”
That view is backed by CSO findings that one- in-five families are caught between paying bills and buying groceries, one- in-10 are borrowing for basic goods and services, and one-in-four have missed loan repayments.
Coupled with unemployment of over 14%, a mortgage arrears rate of 14%, emigration of 40,000 per year and poor growth estimates, Olli Rehn’s interpretation of recovery sounds decidedly suspect.
Kevin Callinan, deputy general secretary of the Impact trade union, said while the commissioner’s comments were “not unhelpful” in that they presented Ireland in a good light internationally, they hid cuts such as the anticipated loss of 16,000 community and voluntary sector workers.
“From the troika’s point of view, we are meeting our targets but the austerity programme is having a devastating effect on services and employment in the community and voluntary sector.
“People are paying a heavy price for this ‘recovery’. Almost half a million are out of work, and of those people in work, many have taken painful cuts in income and very many are struggling so it can not be said we are recovering without also acknowledging the pain that individuals and families are going through.”
Paul Ginnell, policy officer with the European Anti-Poverty Network Ireland, also took issue with Mr Rehn’s remarks.
“Internationally people see Ireland as taking it on the chin but the reality is that there has been a huge negative impact on people and I don’t think we’ve seen the half of it, he said.
“To people in other European countries, Ireland is off the critical list but the reality is not that way at all.”
What Olli Rehn said:
“If you look at the EU/IMF programmes in Europe more broadly, for instance in Ireland, the programme has worked and is delivering, so that thanks to the determination and resilience of the Irish people and their authorities, the country is recovering in which the programme has helped.”
What the reality is:
* Unemployment: 14.2%
* Emigration: 40,000 per year
* Numbers choosing between bills and groceries: 20%
* Mortgage arrears: 108,000 family homes at risk
* National Debt to GDP ratio: 114%
* Personal Debt to GDP ratio: 124%
* Growth forecasts for 2012: 0%-0.5%
* Manufacturing production last year: -4.1%
* Patients on hospital waiting lists: 60,000
* Retail sales by volume last year: -2.7%
* Energy price increases last year: 11.9%
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