The uncertainty over the future viability of some banks in Europe could have very grave effects on the Irish economy and all the rubbish talk about Financial Space during this election campaign could be irrelevant if there is another crash.
We have heard the main parties arguing about whether we have 8 billion or 10 billion or 12 billion Euro extra to spend over the next five years but it will all be totally irrelevant if there is a banking or financial crash in Europe or elsewhere.The signs are not good either as stress tests being carried out on European banks have revealed that a number of institutions in various countries are on very thin ice, and if one or more of these institutions were to go under there would be major implications for the Irish economy.
It is essential that our major political parties should be honest with the electorate over the next couple of weeks in this regard. We are a small open economy and are open to all sorts of outside influences and it may well emerge that Ireland has no Fiscal Space at all. It would be better in the long run for all the major parties to be honest and open about this matter with the people and point out all the possibilities including the negative aspects of what might happen. Politicians and parties must be honest with the electorate and stop talking pie in the sky stuff. We have all seen the legacy of broken promises in the past.