Pact made absolutely no economic sense

THE Stability and Growth Pact was originally agreed and heralded as a major triumph during one of Ireland’s EU presidencies.

I still remember certain Irish politicians gloating about their momentous achievement at the gates of Dublin Castle The pact was designed by the Germans to ensure that previously fiscally vagrant countries, such as Italy, Portugal, Spain and perhaps even Ireland, would behave themselves in a Germanic manner once the single currency was launched.

It is incredibly ironic therefore that the pact was effectively confined to the dustbin of economic history earlier this week due to German misbehaviour. The very important point is that it has now been totally discredited and the Stability and Growth Pact Mark 2 will have to be altered substantially if it is to be effective.