Government open to EU treaty changes

THE Government is willing to consider much greater changes to the EU treaties than just tighter budgetary control, European Minister Lucinda Creighton has said.

But this would not happen until next year, as the immediate priority is saving the euro — which must happen in the next few weeks before it is too late, she said, warning that the break-up of the currency “would be cataclysmic for Ireland”.

Taoiseach Enda Kenny meets German Chancellor Angela Merkel in Berlin tomorrow as she struggles to convince party colleagues to support her vision for greater political and economic union in the EU, which she outlined at her party congress yesterday.

Elsewhere, British Prime Minister David Cameron delivered a blistering attack on “pointless” EU rules and regulations which were stifling growth as it battled with the eurozone crisis.

He called for “fundamental reform” in Europe as he lambasted “out of touch” EU institutions demanding budget increases at a time of austerity for their citizens.

Ms Creighton indicated that the Government would be willing to discuss much wider changes to the EU treaty than the limited changes mooted of greater control for Brussels over members’ budgets.

“We ask ourselves whether we would prefer a wider-ranging treaty change,” she said, adding that such a debate would not be possible at the present time.

“But we need to reflect and ask ourselves what kind of union we want in the future — how we underpin our currency. We have to find a lasting solution, but we cannot have that discussion now in the middle of a crisis.”

When asked if the range of options could include closer political and economic union, Ms Creighton said: “Possibly, yes.”

However, the Government would look to examine the institutional balance, such as strengthening the commission and the parliament vis-a-vis the council that represents the member states.

Ireland could be expected to get considerable support for this from many countries that dislike the German-French axis directing much of the EU’s policy, especially on the euro.

Ms Creighton said the Government would also like to see a strengthened banking regime and possibly eurobonds.

“It’s wide open for real reform,” she said.

There is growing pressure for the ECB to take a greater role in putting an end to the market volatility that threatens Italy, the eurozone’s third largest member.

Commission president José Manuel Barroso said the bank should also ensure financial stability and had gone in this direction by buying the bonds of some member states.