We are becoming powerless to run economy

THE opposition parties have claimed our economy is on “auto-pilot” following the release of the latest jobless figures.

I suggest the economy has in fact been on auto-pilot since the introduction of the euro. When we adopted the euro we lost the two most valuable tools available to manage our economy — control over interest rates and the ability to devalue our currency.

Without these, Ireland can merely tinker with its economy.

This is a fact regardless of which political party is in power.

No one can deny the interest rates that we ‘enjoyed’ over the past few years were totally inappropriate for Ireland.

It may be a few years yet before we realise just how powerless we as a country have become when it comes to managing our economy.

Depending on what the European Central Bank decides to do with interest rates, we may get by or we may face a very difficult and painful time in the years ahead.

Hendrick Verwey

Old Church

Cobh

Co Cork