Dáil Vote will not give IMF/ECB deal political legitimacy – 1% Network Press Release

Date:

The 1% Network has sharply criticised the government for claiming that a vote by Dáil Éireann to approve the IMF-ECB deal would give it ‘political legitimacy’.

Press Release: Dáil Vote will not give IMF/ECB deal political legitimacy – 1% Network

“If Brian Lenihan and Brian Cowen really do believe that this deal is in the national interest, they should put it to a referendum of the people,” Brian Leeson.

The 1% Network has sharply criticised the government for claiming that a vote by Dáil Éireann to approve the IMF-ECB deal would give it ‘political legitimacy’.

Politicians from every political party know that this deal does not have the support or approval of the vast majority of Irish people,” said Brian Leeson, spokesperson for the 1% Network.  “Just because a group of politicians vote for it in Leinster House won’t give the deal any degree of so-called ‘political legitimacy’”.

If the politicians had any real interest in finding out the people’s view of this deal they’d put it to a referendum.  They’re not going to do that because they’re afraid to do so,” said Gregor Kerr of the 1% Network.  “When the people in Iceland were given an opportunity to vote in a debt repayment referendum in March of this year, 93% of them voted against the government’s plans to bail out the banks and only 1.8% voted in favour.  If a referendum were held in Ireland, there is no doubt that the result would be very similar here.”

The 1% Network have consistently made the point that the fact that 1% of the population own 34% of the wealth gives that 1% access to and control of political power in the state,” Brian Leeson continued.  “We have stated that the wealthy investors – both Irish and foreign – who gambled in the Irish property boom should have to take their losses – just as they took their profits.  It is wrong both politically and morally that their losses should be transferred onto the shoulders of ordinary Irish people.  This deal with the IMF and the ECB is only in the interests of the ultra wealthy.” 

What will happen in the Dáil on Wednesday is a total sham,” went on Gregor Kerr.  “Indeed the whole of Irish political life currently is a sham.  A Dáil approval of this so-called bailout will not give it any legitimacy.  And when the general election is held in February or March the people will not have any real choice.  The option of rejecting this deal and forcing the loan sharks and bondholders to take their losses will not be put before the people.”

If Brian Lenihan and Brian Cowen really do believe that this deal is in the national interest, they should put it to a referendum of the people,” Brian Leeson concluded.  “They won’t do so because they know that in reality it would only have the support of the wealthy 1%, and that the vast majority of the Irish population would reject it outright.”

Statement Ends

Note to Editor: The 1% network is a coalition of socialist groups which has come together to oppose the cutback agenda of the government and to promote a socialist alternative to the current socio-economic system.  Organisations within the coalition include éirígí, Irish Socialist Network, Seomra Spraoi and the Workers Solidarity Movement.  The name of the coalition was chosen to highlight the fact that just 1% of the population control in excess of 34% of the wealth of the state.

For more information, contact Gregor Kerr 086 1501151 or Brian Leeson 086 8071010 or log onto www.onepercentnetwork.org  

 

 


 

Further reading from the WSM

 

This is not an IMF bailout but end to ECB life support

Despite the newpaper headlines, what is happening is not an IMF bailout. This is a European debt restructuring process in which the IMF are playing a merely supportive role as consultants. This is a Eurozone process and although the political masters of the Eurozone, through their EU Commissioners, have the final say on passing or vetoing the final agreement, the true driving force behind this process is the ECB.

 

What ways does the ECB/IMF plan attack us?

The government recently published a draft memorandum that will give legal effect to the negotiations between the EU/IMF and Ireland. Essentially the draft details, by quarter of each year, how the government intends to implement an incredibly far-reaching austerity program to help get us back on our feet.

 

A radical analysis of the four year plan and call to action

The government announced the details of the four year plan required as part of the ECB / IMF ‘bailout’ of the banks. There will be five billion worth of new taxes and 10 billion worth of cuts under this so called ‘National Recovery’ which in reality will take 10% out of GDP. As we show below almost all these costs are being dumped on workers, particularly low paid workers, the very sector that gained little or nothing during the boom years. the richest 1% are left with most of their legal tax dodges in particular the ability to avoid paying tax at all if they spend 6 months on holidays out of the country.

 

The failure of the ECB IMF deal and what they are up to

If we accept that this deal was never meant to provide justice to the people of Ireland, then we have to judge its success or failure on other grounds, the ones it was designed to fulfill.  From that perspective the willingness of the rulers of the French, Germans, British and others to drive countries like Ireland and Greece and Portugal, each of us less than 2% of the Eurozone economy, into ruination is understandable, albeit unforgiveable. Just as there is no honour amongst theives, so there is no solidarity amongst capitalists.

 

Why Ireland should default on the loan sharks now

The so called rescue loan being negotiated by the ECB is really a jacking up of the interest rate Ireland is paying on its debt from the ECB base rate of 1% to a more profitable rate of 5% or more. If we submit to this deflationary programme of structural adjustment being pushed by the IMF our shrinking economy will never generate enough to pay off these debts. The only way out is to push for a default.

 

IMF arrival does not transform yesterday's enemies into today's friends

Even the Irish Times has now editorialized against the IMF intervention but, like most of the emerging mainstream concerns, the Times is not concerned about the cuts in jobs, wages and welfare that the IMF will be used to impose. No, their concern is for the loss of 'sovereignty' as IMF intervention results in a rise in populist cross-class nationalism, a tide which ironically the ruling party, which is bringing in the IMF to make the cuts it would like to, will be best placed to ride.

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