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The example of Ireland

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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The PSOE breach an agreement with UI and prevents the adoption of a rental assistance for homeless pensioners

the PSOE has breached the agreement reached with IU-ICV to support in the House of Congress an amendment to the State budget previously agreed with these formations, which share the parliamentary group. The amendment was intended to increase to 531 euros the annual supplement for pensioners who are paid a non-contributory and live in rent in 2011 for lack of a dwelling.

After this amendment be agreed with IU-ICV in discussions in committee held two weeks ago, in the voting that took place last night, the PSOE and PNV budgetary partners and the Canary Coalition broke down. The initiative received 170 votes in favor, 175 against and 1 abstention.

It so happens that the very Psoe 'sold' on Monday this amendment as one of its 'winks' to the left formations of the House and as a justification of the Budget do support social policies. Thus, in the Bulletin of the Socialist parliamentary group that every week is distributed to the media and under the headline 'capacity for agreement' is indicated intentionally that the Socialist Party "was capable of weaving complicity with CiU, ERC-IU-ICV and the Joint Budget Committee that binds to basic agreement with PNV and CC." The following are various amendments agreed between them, and without citing the specific authorship of the author of the same group, "also a pension supplement of 531 euros for non-contributory pensioners who live in rent without home ownership" .

overthrew the Socialist Group agreed this amendment and just 24 hours before the House of Congress has to vote today on another amendment to the pension freeze and ICV IU managed to save the veto imposed by the government not to be discussed 22 other budget initiatives of various groups in the House.

From IU-ICV is assessed that "this decision of the PSOE to prevent prosper our previously agreed amendment, which we consider very important for retirees with fewer resources, especially to the pension freeze imposed by the Government, is about unrest that has caused us to save the executive veto the amendment to be voted today to try to avoid just such a freeze on pensions. "

In his opinion, "this alleged 'punishment' to our parliamentary breach of a covenant before all getting the PSOE is detrimental to the thousands of pensioners with fewer resources that could have benefited from a more comprehensive aid to pay his rent. With decisions like that, the Government is increasingly difficult to maintain that they have some social budgets. "

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property of the powders, this sludge

Carlos Alonso

Responsible provincial institutional policy of the United Left

recently surprised to see in the media, various members of the PSOE and the PP, at local, provincial, regional or national, criticizing the utilities for their deplorable attitude to the Decree of the coal. Attitude, which if successful, will be the last straw for the coalfields.

Let's start saying that all the processing of this order is unfortunate and we should ask ourselves: If Spain was president of the rotating European Union the first months of 2010, how the decree is not handled then?. It is also curious that the free market argue that these two parties and which preaches the European constitution constitution that they drafted, supported and sold to us as the solution to all our problems, as the basis for the claim of the electric companies, against the decree of coal, crippling the sector. Those parties who preach globalization and non-interventionism in the economy, except to save the banks, are now telling us that we must intervene in the market for the subsistence of the domestic mining sector, have they seen the light as St. Paul? or is it hypocrisy?.

If the English government, like the Portuguese EDP, Enel or Italian with the German Eon available from a state-owned utility, could overcome some of these problems. But remember, that PSOE and PP, were to blame for the privatization of Endesa, because if this company will continue today to be public, not make use of the decree, or ceased to burn domestic coal. It is curious that the Italian government to control its energy sector through the public company Enel and Endesa us through.

remember that Endesa was entirely in government hands until 1988, ruling PSOE, the privatization process started with an Initial Public Offering Sales (IPO) of 25% of shares. Later in 1994, also ruling PSOE, was sold a second tranche, and two years later was transferred to the State Industrial Holdings Company (SEPI, the heir of the old INI).

SEPI addressed the last phase of privatization with two new OPV in 1997 and 1998, governing the Pp, becoming one of several private companies with public capital in Spain. It then disappears as Empresa Nacional de Electricidad State Society and becomes a semi-public corporation, a private company with the simple name of Endesa. Finally, and l SEPI Board of Directors agreed at its meeting on September 28, 2007, ruling PSOE, go to the takeover bid by Enel and Acciona on Endesa, and sell the 2.95% owned. After this last operation, SEPI has no further involvement in Endesa.

If successful the use of power and means to national mining, we must ask:

Who are the real culprits?, On the one hand it is clear that those who seek their greatest benefit, as the free market and what that led to this situation, with the privatization of Endesa and free market of the European constitution?