Armoured cars and tanks and guns did not come to take away their sons, but the peoples of Greece and Italy last week found that their elected governments had been replaced overnight by a new postmodern dictatorship of ECB-appointed "technocrat" Viceroys. Clearly in the new Eurozone, the old liberal dogma that modern capitalism and liberal democracy are joined at the hip, has turned out to be just another fairy story.

Something entirely unexpected has happened in Ireland - history has gone into reverse. While North Africa, Egypt and the Middle East are struggling to shake of the shackles of neo-colonial dictatorships, Ireland after the Celtic tiger finds itself back in a situation of direct rule. This time not from London, but from the head quarters of the European Central Bank in Frankfurt and the European Commission in Brussels. A state which it now shares with it’s fellow PIGs, Portugal and Greece. For most of the last 60 years we have been told that liberal history went in one direction, from dictatorship and colonial rule to liberal democracy. This picture no longer fits the new status of the PIGs within the European project.

At the same time that we are witnessing a wave of popular protest in North Africa and the Middle East against aged and corrupt neo-colonial dictatorships, in the heart of Europe we are witnessing something unprecedented and absolutely extraordinary.

History appears to moving in the ‘wrong direction’ in the so-called peripheral countries of the Eurozone.

As the scale of the debts loaded onto the Irish people became clear, the calls for defaulting became louder. The moral argument for default is certainly strong: why should Irish workers pay for the poor decisions of Irish and European capitalists? But justified though it may be, would defaulting cause more pain than gain?

In this detailed interview for the North American Ideas & Action site Kevin Doyle of the Cork Branch of the Workers Solidarity Movement answers questions about the current Irish financial melt-down and the popular resistance. [Spanish translation]

On Tuesday the 7th of December, the Irish government were barricaded inside the parliament in Dublin. They were there to vote on a Budget implementing the cutbacks and austerity measures demanded of them by the IMF and ECB. The budget comes in a year of ever deepening crisis, as the debt of what was once Europe's fastest growing economy, spiralled out of control. The obvious question one is faced with is “What went wrong? What happened to this economic miracle?

The neoliberal model that global capitalism has depended upon for its growth over the last three decades has collapsed in spectacular fashion. The collapse has been remarkable for the astonishing speed with which it has spread all over the world and into every corner of the global economy.

If we accept that this deal was never meant to provide justice to the people of Ireland, then we have to judge its success or failure on other grounds, the ones it was designed to fulfill.  From that perspective the willingness of the rulers of the French, Germans, British and others to drive countries like Ireland and Greece and Portugal, each of us less than 2% of the Eurozone economy, into ruination is understandable, albeit unforgiveable. Just as there is no honour amongst theives, so there is no solidarity amongst capitalists.

Tens of thousands will take part in today's ICTU demonstration in Dublin but the demonstration is seen by ICTU’s leaders as yet another one-off protest, another ‘letting-off-steam’ exercise, a trek around town from A to B to listen to speeches from the same people that have misled us to this position and then go home and get ready to vote for Labour in the forthcoming election.  Far from ‘standing idly by’ they are actively working to demobilise opposition to the government.   Against this we need to use today's protest as the starting point for the conversation about what we’re going to replace the current rotten mess with and as the first block in building for the general strike that we need to bring that about.

The so called rescue loan being negotiated by the ECB is really a jacking up of the interest rate Ireland is paying on its debt from the ECB base rate of 1% to a more profitable rate of 5% or more. If we submit to this deflationary programme of structural adjustment being pushed by the IMF our shrinking economy will never generate enough to pay off these debts. The only way out is to push for a default.