Use vote to secure reduction on debt burden, urges Ross
“The Government should ask the people to pass this, but promise them that if they do so the debt will be reduced,” he told the Dáil in response to the Taoiseach’s announcement that a vote will be held.
The Dublin South TD said debt and the Anglo promissory notes would be “the most important issues” in the debate about the EU fiscal compact.
Enda Kenny is due to sign the treaty on Friday in Brussels before the ratification process gets underway.
Before Mr Kenny does so, he should “promise one thing”, Mr Ross said: “That there will be a credit write-off for the Irish people as a minimum quid pro quo for this treaty.”
The Department of Finance is involved in “technical discussions” with the ECB on reducing the 8.2% interest rate on promissory notes issued to bail out Anglo, or extend the repayment term. A payment of €3.1bn is due at the end of March.
Fianna Fáil leader Micheál Martin said his party would support the treaty but said the issue of the promissory note should have been negotiated before this.
“Independently of the treaty, we are entitled to a restructuring of the bank debt and particularly a deal on the promissory notes.
“Because prior to the establishment of any European facilities, Ireland did its best to protect the wider eurozone and the euro itself and we did that at considerable cost to Ireland.”
Mr Martin said future funding for Ireland would depend on the ratification of the fiscal compact and this had to be explained in a “positive” and not a “patronising” way.
“The best way to get through the crisis is to get through it collectively in a European context.”
The treaty was “not the sole answer to the problems facing the eurozone”, he said. “A comprehensive response is required in terms of broadening the mandate of the ECB and developing a truly fiscal union and we hope those measure will come after this treaty is passed.”
Sinn Féin is the only large Dáil party who will oppose the treaty.
Its leader, Gerry Adams, claimed it would “take away whatever remaining residue of fiscal power there is in this State and in this Oireachtas and give it to unaccountable bureaucrats and bigger states”.
“This is an austerity treaty. It institutionalises into perpetuity the policy of austerity.”
He dismissed suggestions that a no vote would leave Ireland behind in a two-speed Europe: “When the British prime minister, David Cameron, didn’t sign up for this, people were talking about ‘oh he’s going to get left behind’ and so on. But he was back in the next meeting.
“What you always have to say about the Brits is that they always stand up for what they perceive to be their national interest. We need to do the same.”
The People Before Profit Alliance and Socialist Party have both said the treaty would commit Irish people to more austerity.
What does the treaty oblige countries to do?
* Tough public debt and deficit limits must be obeyed, otherwise the European Court of Justice can take legal action against member governments and impose massive fines.
* The structural budget deficit must equal 0.5% of nominal GDP; and when debt exceeds 60% of GDP, additional fiscal measures must be taken to reduce it by one-20th of the difference.
* If these rules are broken the ECJ can impose a penalty up to 0.1% of GDP — in Ireland’s case about €200m.
* Countries outside the fiscal compact will not be able to receive ECB-led bailout packages.
* Critics brand it an “austerity treaty” that will strangle growth and keep unemployment high.
* The treaty has been agreed by all 25 of the 27 EU states (with the UK firmly opposed and the Czech Republic expected to join at a later date) and must be ratified by at least 12 of the 17 eurozone states by Jan 2013.
Previous referenda on Europe:
* 1973: Joining the European Communities: Yes 83%.
* 1987: Single European Act: Yes: 69.9% in favour.
* 1992: Maastricht Treaty: Yes: 68.7% in favour.
* 1998: Amsterdam Treaty: Yes: 61.74% in favour.
* 2001: Nice Treaty I: No. 53.87% against.
* 2002: Nice Treaty II: Yes 62.89% in favour.
* 2008: Lisbon Treaty I: No. 53.2% against.
* 2009: Lisbon Treaty II: Yes. 67.13% in favour.
— Mary Regan
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