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Wednesday, 23rd May, 2012

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The trials of the 21st century Irish

The tough economic times that we are living in is reflected in research carried out for the Irish League of Credit Unions which finds that over half the population are now in difficulty meeting the every day cost of living.

The crippling burden of mortgage rate rises, higher energy costs and persistently high prices is imposing such a heavy burden on people that there is a prevailing sense of despair; an inability to see any light at the end of the tunnel which Irish people may never have felt before even in darkest times.

The proposed imposition of a property tax and water charges further intensifies anxieties as people struggle to make ends meet on incomes that can no longer cover their outgoings. What now for our future - a future that is shaped not in Ireland but in Brussels, Frankfurt and Washington? Perhaps it is the lack of control over our own destiny that is causing the greatest anxiety. While there were home grown factors which helped deliver us to this unhappy state of affairs it is also true that we were part of a wider system of free market economics both in Europe and in the United States that played a big part in driving the property boom and bust. That those outside forces are not responsible and that we must pay for our sins doesn't say much for global capitalism. Maybe it is too much to expect it to have any fraternalism. On the other hand the great collective of the European experiment is now being questioned as never before.

Crisis in Greece, Portugal, Spain and Italy struggling - we are not alone in terms of our dire straits but should it have come to this? A summit of European leaders is being held shortly to try to tackle the debt crisis but can anything be done if there is not the will and sense of purpose by leading members of the club, i.e. Germany and France to drive a recovery? Once the linchpin of the EEC and EU, Germany since it took on the burden of re-unification no longer seems to have the enthusiasm it once had for a shared purpose with its partners in Western Europe. Since the fall of the Berlin Wall it has been looking eastward and increased trade ties with Russia reflect a shift in attitudes. This is a defining moment for Europe - can it meet the massive challenge facing it? If it can the European project can enter a new era of certainty and progression. If it can't, there is now a great danger that the days of the Euro as a currency are numbered and if that happens the whole project can unravel. These are challenging times - the EEC and EU helped Ireland modernise its economy, particularly our agri sector. However, this was done at a price, much of our traditional manufacturing industries that provided such vital employment in our towns are gone. We didn't worry during the good years when a knowledge based economy was said to be the way to go. Now we are very unsure as jobs shrink across all sectors - a good education no longer seems to guarantee anything in Ireland at present. It may offer opportunity in Canada or Australia. However, an Ireland without the EU would find it very difficult to survive in this global economy notwithstanding our ability as an exporter of agri products. At European level we must redouble our efforts to achieve a greater understanding of our plight - the Irish people are hardworking and conscientious, they didn't 'party' as some of our European partners would claim. We deserve assistance out of our very difficult economic circumstances and this shouldn't entail penalising ordinary Irish citizens to such a degree that they want to leave the country. The screw cannot be turned any tighter - a policy of active economic reconstruction should now be implemented here to enable a future for our children and their children. The Government must take a stronger line.

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