Enrique Javier Díez Gutiérrez
For many years Ireland was fashionable and was the "example" to be put to other countries. "Bogota is very interested in the Irish model" (Wall Street Journal, March 25, 2008). "I see only advantages in the Irish model", a "real success story" that sends "a message to France," he declared enthusiastically Prime Minister Raffarin French. An official publication of the Lithuanian government announced that Vilnius had set an objective "to play the Irish economic growth scenario." The British Conservative Party demanded "observe and learn from what is happening on the other side of the Irish Sea." From right Latvian National Council of Honduran employers, the U.S. Republican Party to the American Chamber of Commerce-Uruguayan, everywhere the same point: "The Irish model is a strategy that can work in other countries, irrespective of when geographical area. " In the media all agreed that the "miracle Irish "was a result of liberal reforms in nature, following the neoliberal IMF.
As discussed economics professor Juan Torres, the policy of low taxes on capital and large fortunes (almost half the EU average), the broad liberalization of economic activity based on ongoing privatization, wage cuts and the huge tax exemptions and facilities to capital so they could act at will be presented as the key to their success and what to do any other economy that would be as prosperous and dynamic as the "Celtic Tiger" at the time. Of course he was talking a success only measured by the rapid increase of gross domestic product (the output of this country and that some accumulated) but not in reducing inequality or the gap of the welfare of the country to the European average. Conservative governments of Ireland facilitated the activities of banks that set out to create debt and to fund unchecked speculative activity. They knew that, and throughout Europe, the States would come to "rescue" with public money from taxes of citizenship, if high-risk operations were a fiasco.
Actually, what I was doing Ireland was not simply applying as a student outstripped the neoliberal structural adjustment policies that the IMF had been proposing for years to encourage increased investment income. And so the Fund applauded what he was doing there claiming that their economic policies provided useful lessons for other countries. So far it was not a coincidence that the European student who applied austerity plans as hard as a response to the crisis, suffering from a crisis far deeper.
Indeed, Ireland is these days a kind of laboratory to test the effect of the austerity policies imposed by neoliberal fundamentalism dominant for years in Europe. Ireland passed before anyone a great program of austerity and cuts: up to 20% reduced the salaries of officials and 10% of benefits, in addition to doing the same in a number of programs and social spending. While, yes, while putting at the disposal of failed banks tens of thousands of millions of euros that skyrocketed the deficit and debt. Since 1987, in effect, a "social pact" met the State, employers and unions with the primary aim of "moderation." Result: "Wage cuts and restraint of trade unions allowed to sweep ancestral image of a rural country and indolent "(Le Point, April 6, 1996). But the Irish efforts did not end there. Le Point praised a "bold economic policy has attracted foreign companies' (August 23, 1997). How? Reducing corporate tax to 10%, the lowest in Europe. On the other hand the Republic authorized the "transfer pricing", which allow multinationals to declare their profits in the country offering the tax system more interesting.
When he took these measures, again the Irish case was held up as a role model for others. Media neoliberals, the European Commission and of course once again the International Monetary Fund praised his policy of austerity and cuts off the crisis. The latter body, doing it again displayed his shameless way to make economic forecasts, said that through the implementation of these measures, the Irish economy would grow by 1% in 2009. However, its real effect was another: in 2009 the GDP of the Irish economy far from increasing, fell by 11%. With the plummeting economy could not generate sufficient resources, it was more difficult to raise revenue to meet debt and it was getting worse. Banks continued speculating and worse its financial position and now they need a new dose of generous liquidity to get them afloat: 50,000 million euros just for them.
Given this, the European Commission and the International Monetary Fund have nothing to say when the "neoliberal model" explodes, as it was inevitable to occur as a result of these policies clear. Conversely, these bodies were created to serve the market, simply give Ireland a hurry to put your feet and warn in advance who will take charge of the bill: "The EU will require tax increases to Ireland return takeover. The taxes paid working class not managers, bankers and big fortunes that they have placed their capital in safe havens. Ireland is indeed a good example. But where are the neoliberal policies.
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