Written by Mr Kinsella told the Irish Examiner that control over our own national destiny – over the rebuilding of our economy – is slipping out of our hands. "On present trends and in the absence of a transformational change policy, the IMF will be called upon to intervene with its own particular brand of orthodoxy. We should no longer be surprised at this clear and imminent possibility: the IMF is now an integral part of the EU’s adjustment and financing system. … "The issue is not one of outright default; it’s one of the crisis of credibility in relation to the management of policy. This crisis is reflected, in particular, in the interest rate that Ireland now pays on its sovereign borrowing compared with Germany and, also, in the cost of insuring against sovereign default," he said.
"We can continue – at least for a short time – as we are. The Government had indicated that the forthcoming budget will take another €3-4billion out of the economy. This is utterly wrong. We now have had four such budgets and all of them against the background of businesses and families that were already deleveraging and adapting: the last thing they needed was such a budgetary strategy unsupported by any supply-side policy to rebuild the economy," he said. Prof Kinsella stated that our economy is smaller, our national deficit is higher, our public finances are even more strained – and the rebuilding of the economy has not yet begun. "This particular road is not a long one – it is leading straight down a cul de sac to IMF intervention."
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