Professor John FitzGerald:

It was in Europe's interest. The point about joining a monetary union is that one sets monetary policy for the union. I mention in a footnote in my initial submission that Ireland suffered quite seriously from the effects of German unification in 1990. The economy was taking off in 1989 into the first quarter of 1990, then there was German unification. The German Government spent as if there was no tomorrow, telling the people of Germany that all the infrastructure investment would cost them nothing. German fiscal policy was thoroughly stimulatory. The Bundesbank then raised interest rates and the problem was that it was raising interest rates to deal with the German problem and the rest of us had to take its interest rates. The great thing about monetary union is that it is set for Europe, not for Germany, or not for Ireland.