Devaluing the euro could provide a lifeline

HAVE the powers that be considered the possibility of devaluing the euro? Wouldn’t this be one of the ways to share the pain right across Europe?

If the consensus is that when an individual country has gone too far into debt its currency must be devalued, surely this is the same measure that is required for the countries of Europe that share a currency?

It would mean a significant boost for exports from the Eurozone with tourism likely to be a major beneficiary, and it would calm nervous markets. Inflation is a significant risk — but currently deflation and the risk of a euro break-up seems a far worse spectre. Furthermore, on a local level in Ireland, it is unlikely that rampant house price inflation would return.

If the euro was devalued, sovereign debt (outside the EU) should still be honoured but the debt between European countries could be forgiven as that is what families do in times of crisis — give each other a lifeline. And if there is still a Greek or Italian elephant in the room then Europe can deal with it as an internal family row without the markets interfering.

I am sure the various treaties do not cover this eventuality (devaluing the Euro) but these are extraordinary times and extraordinary measures are required.

Alison Hackett

Crosthwaite Park

East Dun Laoghaire

Co Dublin