Divisions over possible EU treaty referendum
Echoing his discussion with opposition leaders yesterday, the Taoiseach told the Dáil that it was in everyone’s interests that there was more fiscal discipline in how countries draw up their budgets.
Amid increasing public euro scepticism, Fianna Fáil and Sinn Féin pushed for treaty changes to be put to a vote next year. This was even before any final decision is taken on the need to go to the polls following legal advice from the Attorney General, which will be decided in March.
Opposition to stricter budget terms under the new EU ‘fiscal compact’ deal comes as Finance Minister Michael Noonan flies to London today where he will discuss Britain’s decision to opt out of treaty changes with British chancellor George Osbourne. He will also hold talks with banks, investors and British media.
FF leader Micheál Martin said the public were even more in the dark about Ireland’s position in the EU after the summit. Proposed measures to tighten fiscal control in member states would also undermine the EU as a whole, he warned.
He queried why the possibility of the European Central Bank coming centre stage and helping bailout nations through bonds had not been a focus of the summit. It was clear though that with proposals to limit deficit levels to just 0.5% of GDP, that changes would need a vote. He said:
“This will require a referendum from a political perspective, that people be consulted on the issue given that it seems to be the intention of the European leaders to write in to either constitutional law or its equivalent.”
More clarity was needed on the proposed fiscal compact agreement, said Mr Martin.
“I do get the sense that this was a rushed summit. That was broken in the dead of night.”
SF leader Gerry Adams claimed the new deficit level would force harsher austerity on Irish citizens.
“I listened carefully to what the Taoiseach had to say this morning. I am deeply concerned that he has signed an agreement that will have long-lasting and negative consequences for ordinary citizens in Ireland and across the EU.
“The Government has signed up to a new and draconian 0.5% of GDP deficit limit. They have done this without having conducted an assessment of the social or economic consequences of such a move.”
Meanwhile, Mr Kenny phoned British Prime Minister David Cameron last night in what an official described as a “post-summit” discussion.
