Voters ‘will only embrace eurozone reforms if benefits properly explained’

Only by properly explaining the benefits of further eurozone integration to the electorate will it be possible to introduce the reforms needed to make the region work, says Financial Times’ columnist, Philip Stephens.

Speaking at a conference in Dublin yesterday organised by the Institute of International and European Affairs, he argued that the rise of nationalism and euro-scepticism across the EU was inevitable in view of the unprecedented economic challenges.

However, the premise behind much of the anti-EU rhetoric is based on the chimera that regaining sovereignty will equip governments with all the tools necessary to defend and promote national interests in an era of increasing globalisation.

He accused the UK Independence Party (UKIP) and the eurosceptic wing of the Tory party of “being very badly mistaken” if they believe that by removing the UK from the EU that the country will be in a better position.

Because of the interdependence of states, only by sharing sovereignty is it possible to preserve it, he argues. If Britain was to leave the EU then it would weigh on prosperity because Westminster would have to renegotiate a series of bi-lateral trade deals, which is another form of pooling sovereignty, he adds.

Moreover, the proliferation of trans-national actors is posing an increasing number of threats to the nation-state, which makes it harder for governments to protect national borders. Yet citizens look to governments for protection. Set in this context, pooling sovereignty will become increasingly important, says Mr Stephens.

John O’Hagan, Professor of Economics at Trinity College Dublin, said there was an unavoidable interdependency between Ireland and the eurozone, which made it essential to pool sovereignty in the future.

However, in Ireland because of the Crotty judgment in 1987, the Government has been forced to hold a series of referenda on treaty change, which has serious implications because it could have seen Ireland exit the euro or EU even though four-fifths of the Dáil are pro-European.

Mr O’Hagan cites a recent Supreme Court judgment in the case of TD Thomas Pringle’s challenge to the result of the Fiscal Treaty referendum, which shows that the Government has the power to ratify international treaties, including at EU level, without recourse to a referendum.