€150m fine if Ireland fails to ban deficits

IRELAND will face fines of about €150 million if it fails to implement a law banning government deficits under the new draft treaty to be discussed by finance ministers in Brussels on Monday.

A clause insisting that the balanced budget rule be put into the Constitution has been watered down, and so the likelihood of a referendum on the new treaty has been considerably reduced.

However, EU law expert Dr Gavin Barrett warned that whether people would be asked to vote depends on the Attorney General’s advice to the Government, and on the outcome of any challenge in the courts.