Crisis meeting may see another EU vote

The need for another EU referendum is likely to be the “main takeaway” from this week’s crisis meeting of leaders in Brussels, Goodbody Stockbrokers has predicted.

It believes any such development would cause a headache for the Government but said another referendum would be a “price worth paying for” in measures needed to save the euro.

The stockbrokers issued a summary note ahead of the gathering of EU leaders on Thursday.

They will discuss a blueprint on the euro circulated by the “four wise men” — European Council president Herman Van Rompuy, commission president José Manuel Barroso, ECB president Mario Draghi, and Jean-Claude Juncker, the chairman of the eurogroup of finance ministers.

The proposal will call on EU states to surrender powers to run their banks and give up some control of national budgets.

The draft document lays out a detailed path to banking union and the possibility of the EU’s permanent rescue fund directly recapitalising banks.

In its summary note, Goodbody said that to allow the pooling of such risks, Germany would insist on further safeguards being put in place on national spending and taxation policies.

“One can see where Germany is coming from here but the draft makes it clear that this qualitative move to fiscal union will require EU treaty change,” said Goodbody. “If this is the case another referendum is likely to be required in Ireland and may be the main takeaway from the summit for Ireland later this week.”

The note states that “while this would not be welcomed by the Irish Government, it seems to us to be a price worth paying”. Goodbody said the consequences of not implementing some of the proposals put forward were much greater.

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