Did Ireland spend over the odds when repaying its debt?

ashoka mody

Economist Ashoka Mody, who led the IMF team in charge of Ireland’s bail-out, said Ireland “absolutely” blew its opportunity of a fairer deal in 2011 after its burst property bubble collapsed the country’s banks.

Speaking on Newstalk radio in Dublin Mr Mody said Ireland “absolutely” blew its opportunity for a “superior” and fairer deal.

“Ireland fell in with that culture, Ireland had its opportunity to, not just for itself but for Europe, in a way, Ireland in accepting the premise that Brussels and Berlin determine economic policy in every country. Ireland fell in with that premise and therefore perpetuated a culture that this current Greek government is trying to break,” he said.

“There was a burden of debt that would legitimately be declared as an odious debt and this was not necessarily because there was something unique about this particular government but because there had been severe and egregious errors that it inherited.

“It was on that premise that it won the election and what the deal at that time could have been, I don’t know but it should certainly have been a superior deal.”

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