Approximately 30 cent in every euro spent in Ireland ends up in government coffers. There's the VAT you pay, the rates the retailer pays, the income tax on the pay and salary of everyone in the supply chain etc. It doesn't matter if the money we have to pay the government in taxes is in euros or in tiddley-winks!

The government receives even in these bad times upwards of 30 billion euro in tax revenue. This means that the government can issue new parallel currency to the value of 30 billion euro, (we could call them tradeable tax-credits) in just one year. In subsequent years this amount can be added to in the same way as all currencies are subject to inflation or reduced by taking out of circulation currency paid over in taxation.

If we do this, we won't be doing anything new. We will be following the kings of England between William the Conquerer and William of Orange. We will be following Abraham Lincoln and JFK. It is a tried and tested system, and it works.

This fact allows us, if we elect politicians with courage who prioritize the interests of the Irish people, to reject or re-negotiate the EU-IMF deal from a position of strength. 

It is the link with the banks that makes it impossible for the state to borrow on international markets. The use of debt-free money allows us to 'burn the bond-holders' and repudiate that portion of our debt which is money borrowed from the EU to bail-out those bond-holders they, (the ECB) instructed us to bail-out when they told Brian Lenihan to save the Irish Banks, (see RTE's Free-fall).

The markets are likely to be once more willing to lend to the state once we break the link with the banks and show our determination not to default on debt not associated with the EU ordered banker-bailout. However our access to debt-free money gives us the lee-way to get by even if we can't return to the markets immediately.

There are added advantages. As this new currency will only be considered of value in Ireland for the first few years of circulation Irish firms will be able to secure public contracts which might otherwise go to foreign firms. These tradable tax-credits will be as good as money in Ireland but for at least a few years it will not hold value abroad. This will ensure that this currency will remain in the Irish economy supporting Irish businesses.
As these tradable tax-credits will be tagged to the euro there will be little danger of hyper-inflation. We will have the freedom, if we so wish, to gradually increase the percentage of home-produced debt-free money in circulation so that we can ultimately regain our own currency as independant economists throughout the world as well as here at home advise. 

Alternatively we can gradually remove it from circulation as the crisis subsides.