Tag: Fianna Fáil

The Party May be Down, But it is Certainly Not Finished

by dsmooney, posted in Politics
Fianna Fáil

My take on Fianna Fáil’s 73ú Ard Fheis which is taking place in the RDS this weekend (March 2 & 3). This piece was written for the Evening Herald of March 3rd

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For as long as I can recall Fianna Fáil Árd Fheiseana were the party conferences where the emphasis was more on the “partying” than the “conferencing”.

They were great social and political occasions where activists from all strands of society, right across the country, gathered to celebrate their membership of the party.

There they rallied; networked; socialised and renewed friendships with colleagues from other constituencies.

To be brutally honest, for many – myself included – the formal debates and motions were incidental to the core objective: discussing politics with old friends and hearing the leader’s speech.

While tonight’s address, the first by Michael Martin as leader, will remain the highpoint of this weekend’s Árd Fheis, it will come at the end of two days of serious and intense debate about the party’s future.

The issue before the Árd Fheis is that stark: the very survival of what was once the greatest modern political movement in Western Europe.

Over these two days – yesterday and today – at the RDS, members are deciding a slate of major reforms on how the party is organised and run.

Key to these is the move away from the representative/delegate model for candidate selection in favour of the One Member One Vote system (OMOV). In other words; to allow every active member in every cumann to have an equal say in selecting candidates and officers.

It is resonant of the crucial debate the British Labour Party had at their 1993 Conference. That was the year they ended the Trade Union block vote and adopted OMOV.

It was not an easy battle for them. The move to reform and modernise had been delayed for almost 14 years as they tore themselves apart with internal wrangling and infighting.

The result was three stunning defeats and three terms of powerless opposition.

Only by reforming their internal structures and systems did Labour allow itself to reconnect with its membership and, more importantly, with the people. After 14 years of irrelevance “New” Labour began to get in touch with the cares and concerns of the British people and respond effectively to them.

That is what Michael Martin hopes to achieve with this Árd Fheis. While the events of the past few days may have moved the focus slightly away from that goal, he was determined to shift it back as soon as the members start to gather in the RDS last night.

And a fair few of them gathered; with over 4000 members registered to attend by the middle of the week.

It is an indication of how serious the party’s grassroot members are about renewing their party. The number of people running for positions is another. Contest for the 20 nationally elected places on the Fianna Fáil Árd Comhairle has never been keener, with many bright, young first time candidates.

The same applies to several of the other senior positions, though the contest for the positions of Party Vice President was made marginally less intense with the withdrawals of two former party big hitters: Mary Hanafin and Éamon Ó Cuiv.

The weekend’s debates are not confined to organisational matters. The Clár contains some motions which, if passed, would herald interesting shifts in policy, including ones on gay marriage, gay adoption ending the regime of TDs’ and Senators expenses’ and reducing the voting age to 16.

There is also a slew of the more traditional Árd Fheis motions, including some Dublin centred resolutions calling for the reinstatement of the Ballymun Regeneration, Grangegorman DIT Campus and Metro North projects.

So, a great deal of serious work will be done by those gathering in Ballsbridge, but be certain too that there some socialising and banter as the faithful show that while they may be down, the party is by no means finished.

Derek Mooney was a Ministerial Adviser 2004 – 2010 and a Public Affairs Consultant and Speechwriter since the 90s

I Don’t Like The Fiscal Compact Treaty, But I Will Still Vote Yes

by dsmooney, posted in EU, Government, Policy, Politics

My thoughts on why I am not impressed with this Fiscal Compact Treaty, but why I will vote for it and urge others to vote Yes too.  

A few nights ago I was on the cusp of penning a piece as to how it was possible to be a committed pro European and still urge a “No” vote at the forthcoming Fiscal Compact Referendum.

My reasoning broadly ran as follows.

  • While the Fiscal Compact does contain some important measures that would have addressed the fiscal problems that others, not Ireland, had experienced in the run up to the crisis – it effectively does nothing about the core issue facing the EU and the Euro: the dysfunctional European banking system.
  • The EU Council and Commission have wasted over two years taking pointless half measures that tinker about with the symptoms of the problem while studiously ignoring the core problem: the banking crisis.
  • This fiscal compact is just the latest in a series of well intentioned, but minimalist attempts to assure the markets that it ready to address the crisis. Like the others it will fail.
  • What the EU needs now is a short sharp shock to jolt it into effective and decisive action. By decisive action I mean tackling the banking and credit crisis head on and bolstering the role of the European Central Bank to become the lender of last resort.
  • Ireland can not only deliver that shock by rejecting the Fiscal Treaty as inadequate and lacking substance, but it can take the lead – particularly among the smaller, peripheral nations – in demanding that the Commission, particularly President Barroso stop acting as the servants of the French & German governments and get the EU back to being a Union of countries that work together, in partnership and in solidarity for our mutual benefit.

That was my broad theory.

It is not heresy or anti European to say that the Fiscal Compact Treaty does not address the biggest problem facing the economies in both the EU and the Euro.

The point is not that the Fiscal Compact goes too far – it is that it is too one sided. It addresses a secondary problem – not the primary one. It almost completely omits the measures required, specifically on the ECB, to tackle the real problems facing us all.

As I was writing the piece I realised that while I still fully believe in points 1 – 4 the reasoning underpinning Point 5 was fatally flawed.

Ireland rejecting the Fiscal Compact will not be seen as us rejecting it as a half measure. It will be seen as Irish petulance. We have thrown down the gauntlet before – on Nice 1 and Lisbon 1 for reasons that most in the EU failed to grasp.

The Taoiseach and his Ministers have shown not the slightest interest in showing Leadership at the EU Council or of building any consensus among the smaller peripheral countries.

Rather the Taoiseach has been content to roll over and have his belly tickled (metaphorically – I hope) by the big two, and hope that no one will ask him any difficult questions.

He has consistently underplayed his hand for the past year. Stories that talked tough and banged the table at his first Council meeting yielded nothing. Since then he has been content to keep his head below the parapet. The same applies to Eamon Gilmore.

There is nothing to suggest that either are capable of building a consensus across the EU. The reality is that neither have attempted it. Their antithesis to travelling to meet other leaders or hold bi-laterals here is mind boggling, especially when you consider how they howled in opposition that the last Government was allowing Ireland’s reputation to slip.

None of this augurs well for Ireland’s forthcoming EU Presidency, but that’s another story.

Those pointless rejections of Nice 1 and Lisbon 1, are now coming back to bite us. Those who urged us to say No then, are once again in the vanguard urging us to Vote No once more. Their reasoning has not changed. They are as Eurosceptic and anti European as they ever were.

Saying No now would be seen as biting the hand that feeds us – even when that hand has been making a few bob from what its been doing.

Worse still saying No would not gain anything by saying No – except to put ourselves in some undefined limbo beyond the revised European Stability Mechanism. Whereas our saying No in Nice 1 and Lisbon 1 held up the process of ratifying those treaties, saying No now will halt nothing.

We have no veto. We have no bargaining chips on this one. There is no point in threatening to pull the trigger when everyone else knows we have no ammo in the chamber.  UCD’s Dr Ben Tonra makes this point very clearly in an excellent post on the politicalreform.e page here.

The conclusion is that we must pass the Fiscal Compact treaty and then use that passing of the Treaty to build a coalition of smaller countries across the EU to tackle the real problem facing us.

I would love to think that saying No would urge the EU into actions that are long overdue. The sad reality is that it will not.

So, just like the French Socialists who were compelled to vote for Chirac in Round Two of the 2002 Presidential elections, rather than seeing Le Pen slip through, I may be taking a disinfectant mat with me to the polling station as I vote Yes.

I want a better treaty. I want a treaty that tackles the real problems. This treaty itself even acknowledges the need for a further treaty.

If passing this one is the price we must pay to get to that point – then let us do so – and quickly.

Labour Party is the real victim of Sinn Fein’s ST poll surge

by dsmooney, posted in Irish Labour Party, Politics, Sinn Féin

my take on the recent Sunday Times poll as seen from a different perspective, both in terms of distance and time. I never cease to be intrigued how distance can change your perspective. It is true whether that distance is in time or in space. Indeed not only does it change it, it usually improves it.

This blindingly obvious conclusion struck me late on Saturday night as I sat in my Hotel room on the Costa Blanca coast watching my twitter feed to find the results of the latest Sunday Times opinion poll.

As the old joke goes: it was like deja vu all over again. Exactly one year earlier I was sitting in another room at the same Hotel trying to follow the results of the General Election online.

Though I managed to log in every few hours to catch the resulting coming in online, I still failed to fully grasp the full impact of Fianna Fail’s defeat at the time. My mind was elsewhere. My Dad had died suddenly at my parents’ home in Spain on the eve of polling day. I had, along with other family members, rushed over for the funeral in the days that followed.

It therefore took a week or so for the full enormity of what had happened at the polls to sink in. When it did, I found myself almost detached from its consequences and outworkings. I had not been at the count centres for the emotional traumas. By the time I was back home and chatting with former colleagues; they were reconciled with their fates to the point of being phlegmatic.

Anyway, that was a year ago. Back to last Saturday night. Sitting in a similar room, one year on and almost 1800km away, I found myself having quite a different perspective on the latest opinion poll figures.

As I looked at the RTE news online I was taken aback to see them running the line that big news in this poll was the drop in support for Fianna Fail.

Really? Not from where I was sitting.

Perhaps it was the night breeze drifting in off the Mediterranean. Maybe it was the over generous Soberano.

Either way; it appeared to me that the big news in this poll lay elsewhere.

To my mind the first piece of news in the Sunday Times B&A poll was the halving of Labour’s support in one year – from 19.4% on polling day to 10% today.

Second was the dramatic increase in support for Sinn Fein. from just under 10% at the General Election to a whopping 25% in the poll.

Indeed, there is a third equally significant story, namely the finding that, at 70%, almost three times as many people are disatisfied with the Government than are satisfied with it (26%). Not a ringing endorsement for a government just one year into its term and yet to face any seriously testing challenges.

Though it would be foolish to read too much into just one poll, Sinn Fein’s strategists North and South will be feeling understandably satisfied that their tactic of placing the Labour Party firmly in their sights is paying dividends.

In comparison with these almost double digit changes, Fianna Fail’s decrease from 17.4 to 16 is modest, though disappointing.

Yes, it is the type of news Michael Martin and Co can do without with the first Ard Fheis in two years only a week away and the Mahon report looming. But who, in their right mind, really expected voters, who were bitterly angry with Fianna Fail, to suddenly turn and cry “this shower is even worse than you lot: all is forgiven” barely one year on?

Maybe it is a back handed compliment of sorts that the party’s fortunes still merit such attention and coverage: even when the figures don’t exactly back it up.

If so, then expect plenty more of the same for the rest of the year as further polls emerge and more pundits line out to say what it all means for Fianna Fail. Meanwhile, I will see if I can manage to be away for their publication. It appears to be the best way to view them.

A tough year for Martin – and it will get tougher

by dsmooney, posted in Fianna Fáil, Politics

My column in Saturday’s Evening Herald (Jan 28 2012) on Micheal Martin’s first year a leader of Fianna Fáil

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A year ago this week {or “today” if published on February 26} Michael Martin sought and won the toughest and possibly most thankless job in Irish politics today: leader of Fianna Fáil.

Looking back over the past year there must have been moments when he felt he hadn’t so much won the prize, as been landed with it. Yet he did win it.

The manner in which he took a stand and challenged for the leadership helped him throw off his previous reputation as an ultra cautious politician who preferred to kick problems to committees rather than taking tough decisions.

On becoming leader [this day one year ago] he found himself at the helm of a demoralised and dissolute party facing into an election for which it was woefully unprepared.

The once great election winning machine that had been Fianna Fáil limped and staggered its way over the line with its new leader’s energetic and impassioned debate performances as rare high points in an otherwise horrendous campaign.

The result was best described by a northern colleague of mine as the greatest political punishment beating ever. The public was not just disillusioned and angry with Fianna Fáil and its Ministers: it had no interest in its views or opinions.

While his first full year in the job has been tough, it could actually have been worse. At the outset many pundits thought the very best he could hope for was stemming the tide of Fianna Fáil’s decline.

Recent opinion polls and the unexpected second place showing in the Dublin West by-election point to the party not just halting the decline, but even reversing it a bit. But there will be no one around Martin popping the champagne corks for a long while yet.

While the party’s prospects may look a tad better now than a year ago: its future is still by no means assured. The party has a long way to go before the public will be ready to listen to what it has to say.

One of Martin’s successes, if this is the right word, has been to get the party’s membership to grasp the new political reality that Fianna Fáil can no longer take its continued existence or relevance as inevitable.

This was no easy lesson for the party to accept. In some ways it is still a work in progress. While there is much talk of reforming both how the party is run and how it develops policy, these have yet to be implemented.

Hopefully, the reconnection Martin has making between the leadership and the members through his constituency visits and personal engagement should enable him to drive through a meaningful reform package.

But it is not as if everything has gone his way. While the right decision was eventually made; the very public “will they/won’t they” row on running a candidate for theArastook its toll. Likewise, Martin’s sometimes over wordy and earnest contributions at Leader’s Questions in the Dáil have not helped convey the idea of a strong leader.

This latter criticism is often attributed to his need to attack on two fronts at once.  Martin is not just targeting the government; he is also targeting the other opposition alternative in Sinn Féin.

Another explanation is that Sinn Féin now has a much bigger back office and research resource than Fianna Fáil. Addams and Co may be reading from scripts, but they are well crafted and written ones

It is not as if his task will get any easier either.

In the coming weeks Martin faces the prospect of dealing with the fallout of the Mahon Tribunal’s report. While there is no confirmed date for its publication, there is much speculation that it may be released just before Fianna Fail’s Árd Fheis at the beginning of March.

Talk about bad timing.

Whatever happens, Martin’s own position is secure. He has from now until the Locals and Europeans in 2014, at least, to show that he can lead the party to recover some of the public trust and confidence it lost.

After one full year, the toughest job in Irish politics is going to get even tougher.

ENDS

To burn bondholders or not to burn them – is there a third option?

by dsmooney, posted in EU, Politics

Is it any wonder there is so much confusion about what to do with the bank bondholders?

Less than twelve months ago (February 10th to be precise) Leo Varadkar was saying:

“Any bank coming to us looking for more money is going to have to show how they are going to impose losses on their junior bondholders, on their senior bondholders, and on other creditors before they come looking to us for any more money. Not another cent.”

That was before the General Election. Eight months after the election; the now Minister Varadkar had changed tack and was saying:

What’s happening in relation to the Anglo bondholders is they’ll be paid from Anglo’s own resources, from the sale of its own property assets, for example.

By last weekend the line had developed further. On Sunday he was  says that the Government “had to weigh up the costs on the one side and the risks on the other.” and that not paying the €1.2billion of Anglo bonds due this Wednesday: “…would have implications for other State companies like ESB and Bord Gáis,”

It is probably a littler bit unfair to single out Minister Varadkar like this. He was saying pretty much what everyone else was saying in FG during this period. His skill and talent was that he said it more directly and concisely than almost any of his colleagues. It is what makes his quotes more memorable.

Whatever about the changes in the Fine Gael script, two bigger truths have not changed over the past year. The ironic part is that these truths are contradictory.

The first is that the ECB is still holding to its line that bond holders should not be ‘burned’. By that they mean that bond holders should not be forced to accept any reduction in the monies due to them.

The other is the reality that there is a very active market in bonds being sold off at a discount in return for hard cash. These discounts can be fairly hefty, particularly where those bonds have a tasty coupon included.

This trade in bonds was touched upon at a recent seminar on the issue of offset debt, hosted by Thomas Pringle TD and how it could ease the plight of those in negative equity.

Some bond holders are deciding, in their own business interests, to mitigate their losses and sell bonds at a discount. Their rationale is that a bird in the hand is better than two in the bush: a not uncommon business approach.

They sell the bonds on to vulture capitalists who buy the bonds at a 30, 40 or even 50% discount. They retain the bonds face value, and so, they stand to make a hefty profile when the bonds are paid off.

While bondholders may choose to do this, the ECB says they must not be made to do it – except in the case of Greece, but let’s put that to one side for the moment.

This leaves a classic Catch 22. Investors, speculators and traders are selling bonds between each other at varying hefty discounts, with the prospects of making even bigger profits.

It is one thing to say that bond holder’s rights should not be ridden over and allow the market to function, but telling European taxpayers that they should not enter the open market and offer to buy back those bonds, is another.

Its like signing an IOU and watching it being traded among your friends for less than its face value, but being told you cannot dare attempt to buy it back: even if the guy currently holding it would be willing to sell it to you.

Ireland cannot do a solo run and give two fingers to the ECB, but it needs to start canvassing opinion around the EU table to start looking at this issue again.

The noises coming from the new Belgian government, coupled with the prospect of a new occupant of the Élysée Palace come the summer suggests it may be a route worth exploring. Something, perhaps, for the Taoiseach to consider as he heads to Brussels?

FF’s Sean Fleming quickly adds up the damage

by dsmooney, posted in Fianna Fáil, Policy, Politics

My review of Minister Brendan Howlin’s day 1 budget speech. http://www.herald.ie/news/ffs-fleming-quickly-adds-up-the-damage-2954736.html

This is the first budget since Ruairi Quinn’s 1996 one where Fianna Fail have been in the position of having to respond as an opposition.

Only a handful of the remaining Fianna Fail TDs have any experience of replying to a budget statement on the hoof, like this.

Back then they had both the numbers in the chamber and in their research office to be able to respond robustly. Back then, they were also not hampered by seeng their economic strategy being implemented by the government.

In these circumstances, the party’s spokesperson, Sean Fleming, did reasonably well. His accountancy background enabled him to focus in on some of the finer and more damaging points that appeared in the tables, but somehow managed not to make it into the Minister’s script.

Sinn Fein’s Mary Lou McDonald gave one of her best Dail performances to date. Whereas Fleming stuck with the detail, she concentrated on the politics, excoriating and needling Fine Gael and Labour backbenchers for reneging on their election promises.

Over recent years we have been moving from the traditional westminster model of budgets where the finance minister goes into a self imposed silence or purdah in advance of the statement, to a european one where large elements emerge into the public arena in advance.

While recent budgets have seen their share of advance kite flying, this one brought the craft to new and dizzying heights. 

It is all about the management of expectations. It’s an old trick. Get your people spinning that medical cards might be hit, and then hope the public will break out the champagne, or possibly the Babycham given our straightened times, when they are not.
So the theory goes. In this case the audience was not so much the people at home, but the massed ranks of backbench government TDs who would like to be two term Deputies not one termers.
This may account for the very muted applause after Minister Howlin resumed his seat. Though this may just as much been due to how inappropriate and ill judged the loud cheers and fulsome applause the Fianna Fail deputies gave to their recent budgets seems now.

And they say that negative campaigns don’t work…..

by dsmooney, posted in Aras11, Fine Gael, Government, Irish Labour Party, Politics, Sinn Féin

The presidential campaign is barely a week old and already we have candidates producing P60s showing how much they have earned over the years. This was in response to dark propaganda about earnings and directorships.

And they say that negative campaigns don’t work. If we are at this stage just one week into the race then it cannot be long until the demands come that this candidate or that one produces their birth, baptismal or parents’ marriage certs.

We should not really be that surprised. Academic/college politics is said to be so much more vicious than real politics because the stakes are so low. It could just as easily be said about Irish Presidential elections.

It is not that the office is unimportant; it is that the powers are limited and the office appears to fade into the background once the campaign is over.

The fact that Mary McAleese has been an excellent President somehow adds to the notion that it doesn’t matter an awful lot as to who succeeds her.

As none of the candidates have so far convinced us that they are cut from the same cloth as her, the debate is slowly turning to which of them will be the least worst.

The office of President is so tightly defined and closely managed that almost no occupant could manage to go truly rogue. So, while many people, myself included, have severe misgivings about the possibility of McGuinness occupying the office, the truth is that his being President would not change anything. Martin McGuinness being President will not make a significant difference to anyone’s daily life – apart from his own.

The reality of the past decade is that Sinn Féin has been moving steadily to the centre in the North. No sooner do they move into office but they very quickly adopt the policies and strategies of those who were there before them. Sinn Féin in Government in the North is not a thorn in anyone’s side, least of all the DUP’s. They may head up anti hospital closure committees in the 26 counties, but in the North they merrily implement the cuts imposed byLondon.

So, while his election may not herald the end of civilisation as we know it, it could send out a very embarrassing signal at this crucial time.

Almost any of the other candidates: Michael D Higgins, Mary Davis, Sean Gallagher or Gay Mitchell could each fulfil the role in their own individual ways without causing us any embarrassment or sparking an international crisis.

This least-worst approach appeared to be the underlying theme to last night’s TV3 debate.  Unlike past encounters, there was some spark to it. The cross talk between the candidates did not yield much and at times became insufferably twee. The competition to be the most concerned by the trauma of suicide bordered on distasteful.

It was the questioning and serial grilling by the moderator that managed to reveal something more about each of the candidates. As someone said on Twitter last night, it was not that any one candidate emerged as the winner: it was more that some managed to emerge less damaged and scarred.

David Norris and Dana were not among them. Though a veteran of past campaigns, Dana seemed the least prepared and most unfocused. While Norris’s continuing obfuscation in the face of very specific questions from Browne on who it was inIsraelwho had advised him not to publish the remaining letters was telling.

David’s protestations that the public will decide this issue ring particularly hollow when he refuses to give them access to the full facts by releasing the outstanding letters. This issue is not going away and the longer it continues the worse he will get for him.

His media adviser is a big admirer of Tony Blair’s spin doctor, Alastair Campbell, He should remind his client of Campbell’s famous rule that if you allowed a bad news story to dominate the headlines for more than four days, you are in trouble.

David has had more than four days of such headlines and the only end in sight is his own. And, to think, we still have three weeks more of this to go.

Why Fianna Fáil is right not to contest Aras11

by dsmooney, posted in Politics

The reality that Fianna Fail is no longer the huge force in Irish politics that it once was is gradually dawning on some.

Former big beasts in the forest are finding that they now do not strike the same sense of awe and fear they once did when the party commanded support levels of around 40%.

While watching the process of them coming to terms with this loss of influence and authority in public is neither edifying nor appealing – it is better it happens quickly.

The reality of the last election is that Fianna Fail no longer has a God given right to presume it can be in power. It has received what a colleague of mine in the North described as “the mother and father of a political punishment beating”.

It is a beating from which the party can recover, but that process will be long and arduous. The process of renewal the party must undergo must itself commence with the facing of some facts.

The first among these is that the traditional way of doing political business will no longer work. That means, in this instance, that the old assumption that almost any candidate Fianna Fail selects from its own ranks will automatically be a front runner no longer applies. Things have changed utterly for everyone in the party, not just those at the top.

It applies even to huge voter getters like Brian Crowley. For him to think that he could personally withstand this swing against the party is to miss what happened last February.

There is no great evidence to show that the public anger has diminished significantly. Any candidate facing the electorate in the foreseeable future, and that includes this October, with Fianna Fail on their posters will incur the wrath of a still smarting public – no matter how small they make the logo.

Contrary to the views of others, the party leadership was right, and is right, to wait until now to decide its strategy. The suggestion that this decision should – or could – have been made last June or July is nonsense. This is a decision that required some time and space for calm consideration. It is a decision that needed to be made when the full impact and scale of what happened last February had been digested.

Having the Gay Byrne flirtation in public before taking this decision was an error, though it hard to see how anyone could have thought the Byrne option could ever have been considered just in private.

It sent the wrong message to the party membership. Martin’s countrywide tour of the constituencies was reconnecting the leadership with the members – the Byrne episode has dented that reconnection: though not damaged it irreparably, despite the rantings of a few impetuous people on Facebook.

But consider what a hero Micheal Martin would have appeared if he had convinced Byrne to run. Consider too that some of those who were most critical of Martin for courting the popular light entertainer had – a few weeks earlier – been urging him to allow four or five of his Oireachtas colleagues to sign the nomination papers of another, equally well regarded entertainment figure; David Norris.

There is a world of difference between accepting your current situation and allowing it to curb your ambitions. The fact that Fianna Fail may not directly contest this October’s Presidential election does not undermine the party’s hopes to recover the public trust it has lost.

If anything, not running a traditional style candidate is part of the process of letting former supporters know that it is taking the hard message they sent last February to heart.

This is not merely a question of the party saving a few hundred thousand Euros by not running a candidate – it is about Fianna Fail doing what it traditionally did best: facing up to harsh realities and addressing them. It is this which offers Fianna Fáil a way to renewal and recovery, not the fielding of an Áras 2011 candidate.

Why current crisis is more political than economic

by dsmooney, posted in EU, Policy

My latest Evening Herald column from August 8th 2011 – you can also see it online: here

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Euro Parliament Committee Room - Bxl

Success has many fathers, but failure is an orphan. Clearly, no one has told the economists this.

In any other walk of life — architecture, dentistry, cake decorating — people run away when they see failure or disaster looming.

Not the economists. They embrace disaster. They revel in it.

As soon as a crisis looms they rush to the TV camera and the microphone to say how they predicted it.

They take a pride and pleasure in being associated with doom and failure that would do your heart good, if the consequences were not so dire for the rest of us.

In the wake of last week’s market turmoil, the weekend papers and discussion shows were full of economists doing what they do best.

Switching between the radio stations on Saturday and Sunday mornings was like playing some demented radio five-card stud — I see your dollar bond collapse and raise you an Italian bailout.

The Sunday newspapers were as bad with even more dire predictions of either the collapse of the euro or the dollar, or both.

We are living in uncertain economic times … and will be for some years to come. No one needs to tune into the radio to learn that.

This is a major culture shock for many, though not for those of us who lived through the Eighties … and no one wants to see another decade lost to despair and inactivity.

But I digress. So why have we seen renewed predictions of crisis this week? They do not seem to have been prompted by the publication of any eurozone statistics or hard figures.

Neither could they be reasonably explained away as just the result of a global slow news day.

While they may, in part, be due to the outworkings of the American debt ceiling compromise, the giveaway is in the word most often employed by economists in describing the crisis: confidence.

We have seen share values drop and bond costs increase over the past week because market analysts and investors do not have confidence in the capacity of eurozone countries to deal with all the debt in the system.

Could these possibly be the same investors who were protected from massive losses in banks and bad investments by those same governments?

Ironic, isn’t it? Eaten bread may be soon forgotten, but never with anything like the speed and hypocrisy with which socialised private losses are forgotten by the markets.

It is tough to make someone have confidence in you, particularly when you have not got much confidence or trust in them. But wringing our hands in anger on this won’t make the problem go away.

As I said earlier, the past week’s scare does not have its origin in a spreadsheet. It is fundamentally a political issue; not an economic one.

The real danger for us is that the dramatic actions and reforms the market is demanding in return for their “confidence” would be deeply unacceptable to people here and across the Eurozone.

This is the almost impossible balance that the eurozone leaders are trying to strike. To make the changes just about needed to gain market approval without totally alienating public opinion at home. The political spectre of Brian Cowen must stalk their deliberations.

Not that the eurozone leaders merit much sympathy. Merkel and Sarkozy’s slowness to act decisively in the early stages of this crisis has cost us all. Their dithering and loose talk threw Ireland to the market wolves in a futile attempt to stem the tide at no cost to themselves.

Their recent reforms to the European Financial Stability Fund have been more carefully judged, though these will take a while to work their way through.

Meanwhile, the next time you hear an economist demanding firmer and more determined actions, just remember that translates in higher taxes and higher charges for you and yours.

– Derek Mooney

Quick quips will not get you out of this mess, Senator. You need to hear some things you don’t want to hear

by dsmooney, posted in Politics
Presidential candidate
Senator David Norris

Text of my article on the Norris campaign saga from Evening Herald – see it online here:

I like West Wing quotes. They are not just well written, they can neatly sum up a situation. The one which comes to mind as I watch the evolving Norris campaign saga is from an episode in series one.

In it, the fictional President Bartlett character advises a colleague on selecting a campaign manager/ chief of staff. “Do you have a best friend… Is he smarter than you… Would you trust him with your life?”

When the guy answers “Yes sir” to all three questions, Bartlett tells him: “That’s your chief of staff.”

That’s precisely what David Norris has needed from the start of this whole thing.

Though I have criticised some of them, he has had many loyal and personally devoted campaigners. He has a huge social media support network too. But sheer enthusiasm is not enough. The one thing he has lacked most was someone who could challenge him and tell him the unpleasant facts he has not wanted to hear.

Many months ago I said that David’s gift for the quick quip and caustic comment may prove to be his Achilles heel as it suggested a lack of gravitas.

This proved only in part to be true. The tone, content and nature of his lengthy 1997 letter to his former partner’s lawyers was ill considered, ill advised and exposed poor judgement.

With due respect to the Senator’s continuing supporters, this assessment is really not in question. One in Four founder Colm O’Gorman put it more forthrightly on Twitter saying: “my views on his writing the letter are clear and unequivocal. He was wrong. Very wrong.”

Some, like Senator John Crown, attempt to explain away the letter pointing to ones written by Kathleen Lynch, Bobby Molloy and Trevor Sargent. Besides the “two wrongs don’t make a right” argument, in those cases the authors accepted their ill judgement and in the cases of Molloy and Sergent they resigned.

Yes, there are nasty people and vile groups who want to see Norris’s candidacy scuppered. Yes, there are those who would have employing dirty tricks to frustrate him.

But this isn’t a mafia movie. The enemy of your enemy is not always your friend.

The contemptibility of some of those who oppose David should not blind us to the legitimate questions this letter and saga raise about his candidacy. This is not a slanted leak from his detractors. The damage here comes from what the candidate has said himself and the material he has made available.

Running for the Presidency is not like a really big Trinity Senate campaign – and this campaign has not really started yet. We are still in the pre-campaign stage. The last two Presidential campaigns saw major negative campaigns. In 1990 the target was Brian Lenihan Sr, in 1997 it was Adi Roche and Mary McAleese. I fear we may have more to endure when this race hits its full stride in late September.

So where does that leave David’s campaign now?

David now says he wants to fight on, even though he recognises his chances slim. His courage and tenacity is admirable: but it is time to face realities. Alastair Campbell famously said that you have eleven days to kill a story or you’re toast. This is the second crisis for David, so he will have even less time.

I would suggest that one of two things may happen over the coming days to decide his future prospects.

The first is that some new Oireachtas members may rally to his cause. He already needed five more, the damage this crisis is inflicting on his campaign means he needs them today. If there are five more nominators out there: right now is the time to them to declare, not next September.

The second and more likely scenario is that some of those who have already declared for him will tell him, either privately or publicly, that they cannot now follow through on existing pledges of support. That will end his chances.

Whatever happens, this presidential race has changed completely. Past back markers may soon emerge as front runners… and there is still Dana to consider

Evening Herald August 1st August 2011