Passing treaty won’t stop mounting debt crisis

Mr Dervis’s article concerning government debt within the eurozone (Irish Examiner, May 17) focuses on the current fad on overcoming the economic crisis- growth, not austerity.

However, the nature of a properly-functioning single currency is being overlooked; it has to be underpinned by a fiscal transfer union.

Instead of a social-democrat mechanism of stability through fiscal redistribution, we have a monetary union without fiscal transfer union, which is a neo-liberal gift to speculators in debt-markets.

Passing the Fiscal Compact Treaty, or not, will not stop the current economic debt crisis, but only voting no will force this Government — in unison with other nations who have transferred sovereignty as part of the European project — to push for fiscal transfer union.

Without this, the euro will fail, while market speculators reap the benefit of high bond yields; as a consequence of debt which theyhave they have supplied in the first place.

Carl Dennis

Tuam

Co Galway