The statement issued last night by the Eurogroup finance ministers referred to the “fiscal adjustment” and “structural reform” that Ireland will have to undertake as a condition for tens of billions of euros in emergency loans.
But Jan Kees de Jager, the Dutch finance minister, put it more bluntly in his own statement. “Ireland will have to cut fast and deep,” Mr De Jager said. As if that were not unpleasant enough, he ominously added that “The IMF will have a prominent role in drawing up the aid package.”
One day I’ll break the habit of only visiting Ireland when there’s a referendum on a European Union treaty. It can easily mislead you into thinking that the Irish people like nothing better than a passionate ”national conversation” (as the latest faddish expression puts it) about Europe. In fact, it is closer to the mark to say, as Eamon Delaney does in an article for the Irish magazine Business & Finance, that “Ireland is an island with a self-absorbed political culture which is not all that interested in overseas affairs”.
Be that as it may, I’m back in Dublin and the contrast with the political atmosphere of June 2008, when Irish voters rejected the EU’s Lisbon treaty on institutional reform, is pretty startling. Fifteen months ago, businessmen and economists I talked with were in no doubt that Ireland was heading into a recession, but none predicted the whirlwind that has wrought unmatched havoc on the economy and come close to destroying the national banking system.