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in particular, its bigger states.
The lack of democratic control over the economy in
Ireland, North and South, became particularly clear
during the banking crisis and the period of austerity.
While the experience of the crisis and austerity was dif-
ferent, North and South, reflecting different social,
economic, and political contexts, as well as different
forms of democratic control, it nonetheless showed that
power lay elsewhere.
The 2008 global economic crisis and the responses to
it in the industrialised rich countries of the world led not
just to a re-moulding of capitalism, but to increased clar-
ity about both the lack of global democracy and what
John Pilger termed in 2002, “the new rulers of the world”.
Neoliberal minimalist State regulation of financial
institutions, and the economy in general, was replaced
by high-State interventionist ‘austerity’ measures,
aimed at protecting capitalist financial structures. In the
EU, Governments nationalised private debt, spreading
the costs across their local communities, largely to
ensure that capitalism as an economic structure and ide-
ology was maintained. The notion of ‘European-ness’
and a sense of a unified EU citizenship - used to promote
the idea of a greater social and economic union from the
1970s - gave way to single-State self-interest as the
bigger economies banded together to protect their
national interests and the interests of their banks and
their bondholders.
Smaller EU states, having progressively relinquished
sovereignty to the larger states, from Maastricht (1992)
to the Euro (2002) to Lisbon (2007) in the
interests of ‘Europeanisation’, realised
that they no longer controlled their own
economies, budgets or fiscal arrange-
ments. Ideological choices appeared
limited in smaller states – either accept
the new ‘austerity’ measures, enthusi
-
astically, as the only solution to a global
crisis, or accept them, reluctantly. What
Greece’s former Finance Minister, Yanis
Varoufakis, was to call, “financial terror-
ism” was in town.
Irish Governments from 2008 on fitted in with that
‘austerity’ agenda accepting with enthusiastic energy
the dominant agenda of public-sector cuts. Although the
capitulation to threats from the IMF and the EU seemed
to show a lack of democratic control, they still had a
choice, even if it was simply to raise a protest at the way
their State was being treated. A ‘pragmatic’ approach to
the powerful seemed the best option and by and large
the approach fitted with the world view of the main
parties.
Up until 2015, the North of Ireland had not suffered the
same level of cuts to the public sector, welfare services
and benefits or the same levels of unemployment or emi-
gration, as the South. Initially this was because the
Brown Labour Government in Britain opposed wholesale
‘austerity’ as the way out of the crisis.
However, the elections of Governments in 2010 and
2015 committed to ‘austerity’ meant that the North then
experienced in a more brutal way the sharp end of ‘aus
-
terity’ especially from 2015 onwards. Indeed it was even
clearer by this stage that ‘austerity’ was a tool used by
the Tory Government as part of a wider agenda to reas
-
sert Neoliberal thinking, regardless of any economic
crisis - and to reject any serious consideration of alter-
native approaches.
Lack of democratic control in the North was of course
exacerbated by the lack of agreement between the
Nationalist and Unionist parties within the devolved
Executive - largely linked to the old animosities over the
constitutional question, the legacy of the conflict and
continuing political uncertainty and distrust. However,
it was also linked to different ideological positions on
the new Neoliberal agenda. While the nationalist parties
made some sort of a stand against ‘austerity’, the union-
ists demanded the implementation of the UK
Government’s ‘austerity’ agenda.
As the Executive faced collapse throughout 2015, over
a range of different issues, austerity being only one, an
initial agreement was cobbled together by the parties to
continue on in Government. By the end of 2016, the Exec
-
utive had shattered, possibly indefinitely.
What the future holds for Ireland, North and South,
remains unclear. Despite everything, however, people
still do have choices.
In the South they have shown that in recent years - in
the rise in the vote for parties from the Left in opposition
to ‘austerity’ and during the successful water-rates cam-
paign. Whether that leads eventually to a Left-leaning
Government for the first time in Irish history is difficult
to predict, as is whether such a Government would reas-
sert more democratic control over the economy in the
face of potential global opposition.
In the North it is too early to say whether traditional
Unionists will revisit the ideas espoused by their ances
-
tors in the 1790s in the United Irish Society, ideas not
just about grasping the idea of self-determination but
about national reconciliation on the island.
And of course little has been said in recent months
about whether Brexit may lead Ireland North and South
to eventually consider Irexit, an Irish withdrawal from
the EU, or at least a renegotiation in relation to greater
sovereignty. Of course that decision may be made for us
by others – if the EU itself ultimately disintegrates!
Féilim Ó hAdhmaill is a lecturer in social policy at Uni-
versity College Cork. This article is partly based on his
chapter, Ireland and the Global Economic Crisis: One
Island, Two Different Experiences, in Murphy, M, and
Dukelow, F, (2016) ‘The Irish Welfare State in the
Twenty-First Century: challenges and change’.
The ‘independence’ of the
Irish State in the South always
seemed compromised, initially
by economic dependence
on Britain and then by EU
membership and a progressive
seepage of sovereignty
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