The Troika are not demanding the sell-off of State assets, and Labour campaigned against such a sell-off before the last election. Privatisation is being driven by Fine Gael. By Michael Taft.
Whatever about the case-by-case merits of the Government’s announcement yesterday on the sell-off of State assets, we should be clear about one thing: the EU-IMF Memorandum of Understanding does not require privatisation, in whole or in part. In addition, the discussion of the sale of State assets in the Memorandum does not take place in the fiscal section but rather in the section regarding obstacles to competitiveness. In other words, if there is to be a sale of State assets, the objective is not to write down debt but to improve competitiveness. Indeed, it is hardly likely that the Troika would demand that State assets be sold in order to reduce the projected debt of 115% in 2015 down to 114% (which is what the Government’s announcement yesterday would do).Add a comment