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Dublin: 11 °C Thursday 20 June, 2013

EU plans to end debt crisis could be adopted ‘without treaty change’ – Kenny

The Taoiseach confirms that proposals put forward by Herman van Rompuy include options which would bypass a referendum.

Herman van Rompuy is reportedly considering an amendment to a EU protocol - but, crucially, not to the Lisbon Treaty.
Herman van Rompuy is reportedly considering an amendment to a EU protocol - but, crucially, not to the Lisbon Treaty.
Image: Virginia Mayo/AP

PLANS TO SOLVE the European debt crisis being put forward by Brussels include options which would avert the need for an Irish referendum, Taoiseach Enda Kenny has confirmed.

Speaking in the Dáil this morning, the Taoiseach said policy papers put forward by European Council president Herman van Rompuy included the potential for “serious and significant changes without having a substantial treaty change”.

Van Rompuy’s plans have been circulated to EU heads of government ahead of their two-day summit, beginning tomorrow. The summit is seen as the last chance for the EU to stop the euro from eventual collapse.

Kenny told independent TD Shane Ross that Van Rompuy’s paper also outlined the areas of the current EU treaties which would need to be amended, if leaders agreed to pursue a programme of amending them.

Proposals to avoid a full-blown treaty change would avoid the need for a referendum in Ireland – which would be seen as the most obvious stumbling block to an adoption of a new treaty.

As a result, the new rules are not likely to see the creation of a fully-fledged central fiscal government – as the transfer of ‘competencies’, or government powers, from member states to Brussels would require a full treaty.

Instead, the Financial Times suggested, the heads of government may agree on amendments to a protocol attached to the Lisbon Treaty – which requires member states to adopt legal measures implementing the so-called “golden rule” on budget deficits.

Specifically, the measures would make it effectively illegal for a government to run up a deficit of more than 3 per cent of their GDP – or face massive sanctions imposed by Brussels.

The FT says Van Rompuy is satisfied this change could be agreed by all member states – potentially bringing an end to the debt crisis without needing any full-blown treaty change.

This is reinforced by Article 126 of the treaty on the functioning of the European Union (PDF link), which specifically allows for strengthening of the protocols as long as all member states sign up to it.

It is unclear whether the proposal will meet with the approval of France and Germany, however, who are today due to present Van Rompuy with their own joint proposals – which are set to include the speedy adoption of a new treaty providing for closer fiscal governance.

British prime minister David Cameron has also threatened to veto any plans for a new treaty, saying he would be “insisting on some safeguards too” in order to safeguard the UK’s own interests.

Kenny also told the Dáil that the summit – intended to finish on Friday – “could actually last longer than is being forecasted”, potentially indicating that Europe’s leaders will continue their summit until a deal is reached.

Read: Cameron threatens to block Merkozy’s EU Treaties change

More: EU Commission could be given powers to impose austerity – report

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Comments (98 Comments)

  • As this is doing little more than properly implementing half of the Stability & Growth Pact from the Maastricht Treaty, I’m not that excited. It would, however, have been useful if they hadn’t ignored the requirements of the Pact over 60 times since it was introduced in 1997. You know, fiscal responsibility and all that.

    Though they still need to revisit it to take account for reasonable ups and downs in the economic cycle – at least not running a deficit of more than an average of 3% over three years or something similar. The strict 3%pa limit is what caused trouble in France and Germany in the early 2000s (and they couldn’t meet the criteria even then).

    Reply
  • I still fail to see how imposing this huge fine on countries for breaking the “golden rule” is going to solve the immediate crisis and collapse?

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  • Unelected President of the EU Council suggests that the People should not have a vote.

    It’s not exactly a shocker. These are the people behind Monti in Italy, the first leader of a European country, since the death of Gen. Franco to never had even one person vote for them. Nor will they ever get to vote for him, as he is now a senator for life – Caligula’s horse, will never be subjected to the people.

    The same group that pushed for Papademos, the ex Greek Central Bank head, the man behind the cooking of their books prior to entry of the Euro to be made Prime Minister. Lucas Papademos, in the new tradition of the EU, is not elected either.

    Unelected – the new CV buzzword for “leaders” in Europe.

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  • Ciaro 07/12/11 #

    Until 2008 Ireland complied with the 3%. Rule. What difference will this piece of shit legislation make?

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    • Germany and France always ignored it. They will ignore it again. It’s just more EU bolloxology. Very dangerous, destructive to the economy and putting a bandage on a cut hand while the patient is having a massive heart attack.

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  • All the people that TIM above mentions are Goldman Sachs people. Both have become non elected heads of their countries. Watch out for the re emergence of Peter Sutherland in Ireland.. Goldmans henchman here in Dublin.

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  • Look people should unite and take to the streets if this is true the one thing these fuckers are afraid of is solidarity that why this government won’t touch Croke park agreement Europe is the same the people need to say ‘enough’ at some stage we have been silent for long enough and this has given the unelected Eurocrats free reign let me know when the next rally is on I’m there

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  • Well with Cameron’s staunch opposition to the further advancement of national powers to Europe, it might be the ironic case this time that dem feckin Brits that did dem tings might actually help save part of our sovereignty, assuming Kenny falls into line behind him, which might well be quite likely

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  • Ah mighty stuff.. So we’ll just rip up our constitution shall we? Bully boy tactics from Europe.

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  • Enda kenny should be made step away from his european party, he really has a conflict of interest and it is obvious to see that he thinks more of his european counterparts then he does his fellow irish citizens! We need to get them out d fuck of power bfore dey completely destroy our country! Ministers salaries also grew on d boom years so y aren’t they taking cuts like d old and disabled cuz dey are nothing but a jumped up self serving party with nobodys interest in mind but themselves, any body who can say they support this gov need to be taken to the next port and shipped over to mainland europe were they would fit in nicely. I am so fucking angry as it seems i have no choice but to emigrate tats if i can afford d fuckin ticket!!!! Arrrgggghhhh

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  • Conniving despots. They treat the Irish people like something on the end of their shoe. What a brilliant union to belong to.

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  • Aydo 07/12/11 #

    Soooo…we’ve lost control?
    The last of it?

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  • Zie blimps are en route.

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  • Sneaky bas***ds just show what we are up against ..

    Reply
  • I wonder if it is possible to switch governments with Iceland.

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  • Lets see if Mickey D’s pre presidential election promises of upholding and protecting the constitution was as shallow as his labour buddies pre election promises.
    When did it come to this?.. when an unelected fool can run roughshod over our national constitution in cahoots with two foreign states?

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  • Dear E.U. F**k off.. signed people of Ireland and those other smaller European nations

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  • Democracy in action. Funny how the pro Lisbon lot told us this kind of thing could not happen if we voted yes. FG, LAB & FF will nod this through without a thought. Hopefully there will be someone out there who will take this to the Supreme Court.

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  • I was really looking forward to voting ‘NO’ in referendum 1 and then later ‘NO’ in referendum 2, only to find out it was in fact a ‘YES’. Those nice eurocrats have saved me so much time and trouble. Democracy is so inconvenient.

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  • Mr G 07/12/11 #

    some other countries say that if 5% of the Electoral Register sign a petition for a referendum the government have to do it, in Ireland this would be 150000 signatures which is not that bad, could be done

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  • where are all the people who where stuffing the yes vote down people neck. constantly going on that we should all vote yes because all Europe has done for us.

    They all seem very quite now.

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    • Not sure what Europe has done against us. We as a nation repeatedly elected a government who created this mess we’re in. The Germans and French obviously were not too happy with being expected to fund our fiasco.
      And before anyone pipes in with the Germans and French banks loaned us the money perhaps someone will actually prove that. The figures should be available yet I keep asking for proof and no one can provide it.

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    • @Gary

      So where do you think the money we borrowed came from? Please get off your high horse. No one is saying that we are blameless, however it is a fact that we have been stiffed with paying off all private debt of our banks including unguaranteed debt at the behest of the european core nations. It is also a fact that US treasury secretary vetoed any writedown on unguaranteed bank debt. There is plenty of evidence out there for these simple truths. Also if you think that previous referenda did not involve some dilution of the powers of our government then you must not have read the treaties as well as you claim.

      Finally what is being proposed vis a vis the 3% deficit limit is a strange kind of ‘fiscal union’ . Real fiscal union would involve the ECB being given the powers to act as lender of last resort. Now that’s one treaty change I would vote for.

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    • @Gary My God….words fail me

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    • http://thepressnet.com/2011/04/04/german-and-french-banks-call-the-shots/
      For Gary, the brainwashed EU dude

      I’m seriously beginning to think that this Gary Clowry guy is the monkey pet of Sarkozy. He seems devoid of all pride in his country or people, he just copy’s and pastes the same crap about the EU here every few weeks. Its almost like he has been brainwashed by some EU loving cult. Its scary, because guys like this are out future!

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    • Nah I just like facts not what people think passes for fact down the pub.
      It’s a pity those amounts include all the bank subsidiaries that operate in the IFSC. So for example the money is owed by Acme German Bank Ireland to Acme German Bank Germany, the same company. Try again.

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    • Once again what you just said makes absolutely no sense, its like you just made it up…or read it from the back of a cornflakes box. You are beginning to irritate me, I’ve seen you here before, same copy and paste propaganda EU Federalist crap…you are like a worn out sound-bite. You just look foolish, bye Gary…its been like conversing with a robot :)

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    • @Andrew Logue. The details I’ve seen suggest the money was borrowed off the international money markets, mainly US and UK based. Which also explains why the Americans were so set against us burning the bondholders.
      I didn’t suggest that previous treaties didn’t involve sharing some competencies with the EU, obviously they did. I personally don’t have an issue with that. Let me post you something from boards.ie…

      “What has “economic sovereignty” ever actually meant in the Republic of Ireland?

      Protectionism, corporatism, parochial clientelism, state monopolies by the bucketload, unelected union bosses dictating policy, waves of mass emigration, giveaway budgets, property developers’ tax breaks, unsustainable minimum wages, increasing state spending by 140 percent within 8 years to make a boom “boomier,” bank bailouts, protecting some of the highest paid public servants in the world at the expense of everyone else … where to stop?

      We shouldn’t be mourning the loss of Irish economic sovereignty — we should be cheering it. ”
      Hard to argue against that really.

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    • @Magic Kelly. I gave you a fact. You may not choose to accept it based on some pre-existing bias but it’ll still be a fact. Nearly every time I see figures about the money owed to Germany they include German banks based in our IFSC. We don’t actually owe that money nor will be ever owe that money so those scary figures are rubbish.

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  • Mr G 07/12/11 #

    Before we sell the country we should ask the people

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  • Mr G 07/12/11 #

    How many people are needed to sign a petition to get a referendum held, time for the people of Ireland to decide on if we want to stay in the euro or not!

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  • Jebus the comments are worse than usual in here and that’s saying something.
    The Crotty judgement means that *any* change in our sovereignty means an automatic referendum. So if no referendum is needed that by default means our sovereignty is not being affected. I’ll trust our Supreme court over a bunch of ill-informed ranters over the internet.
    I hope that I don’t have to explain how representative democracy works, we elected people to make certain decision on our behalf, that’s their job. We just elected the last lot this year with a large majority. If you don’t like some of those decisions then you get to vote for someone else in a few short years.
    I’ll ask again for all the Lisbon treaty whiners to point our where in the treaty it does the bad things you claim. It’s a detailed legal document so that should be easy right? Of course after asking many times previously and reading the treaty myself I know you won’t, I know you can’t.
    Is having some fact in these discussions so difficult.

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    • Just who decides there is no requirement for a referendum because our sovereignty is not being affected our very pro EU government?

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    • @Kerry – That would be the job of the Attorney General, and I’d imagine you can be safe in thinking that the AG would always recommend a referendum if there was even a smidgeon of a chance that any other method could be appealed in court.

      As Gary said, a referendum has to be held if Ireland is transferring ‘competence’ – i.e. the ability to govern – to the EU in any area. If the deal means no referendum, it means no extra powers are being handed over.

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    • @Kerry. It’s why we have the Attorney General and the Supreme court, to uphold the constitution. Also people could bring a legal challenge if they felt there was a problem. It’s really this simple… No treaty = No new powers.

      It’s time to stop blaming others for what we as a nation did to ourselves.

      Oh and btw I don’t suppose the people giving me the thumbs down will care to show where I’m incorrect? I won’t be holding my breath though.

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    • I’m seriously beginning to think that this Gary Clowry guy is the monkey pet of Sarkozy. He seems devoid of all pride in his country or people, he just copy’s and pastes the same crap about the EU here every few weeks. Its almost like he has been brainwashed by some EU Federalist loving cult. Its scary, because guys like this are our future!

      Reply
    • Gary, maybe people just have issue with your very condescending tone?

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    • @Hank Scorpio. You might be right, and I do apologise for that. But honestly by the time I read down all the comments, all the completely ill-informed xenophobic bull, I was kinda pissed off.

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  • We voted for Maastrict so now we live with it. That’s life, that’s democracy.

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  • I am not happy with this at all. If you are unhappy with it, what are you going to do? Protest? Are you f*ck. Big bunch of armchair warriors. All mouth and no action, just like our politicians.

    Reply
  • Petition – no EU Treaty Changes without a Referendum
    http://www.gopetition.com/petitions/no-eu-treaty-change-without-referendum.html

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  • the euro is a dead horse, i know, you know it and the whole world knows it but somehow sarkozy and merkel want to make sure everyone has suffered that bit more before it collapses. I would bet all the euros i have that we will be paying witt punts for our christmas presents in 2012!

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  • We can’t let another EU treaty pass in Ireland.
    Look at our country since Lisbon was passed.

    Corporate Tax has risen
    All our young people have been forced into the army
    Abortion is legal in Ireland

    We just can’t trust them :D

    Reply
  • Anyone reporting on the Merkosy open letter to Van Roumpy? They have both come out and asked for “Tax harmonisation” – – Wave goodbye to our Corp. Tax rate, our one economic advantage. FG/Lab govt haven’t the balls to stand up to them.

    http://www.bbc.co.uk/news/world-europe-16075890

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  • By taking to the streets you play into the hands of the elite. They will use it as an excuse to enforce emergency legislation thru in order to quench the unrest and gain even more control.

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    • Ok Enda Kenny, good man

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    • Spot on Peadar. The only way we can ensure a way out of this crisis is to be walked all over again and again, by our own leaders and by Europe. Never hold anyone accountable, never demand higher standards. Never say why do we like being pissed on so much as a nation.

      Merkel knows that if she tried any of the shite that we put up with in Germany, that half her country would be out on the street calling for her head. It is what normal countries do. Same in Holland, France, Denmark, Finland etc. .It is the one consistent factor in all the countries that are bailing us out. The do not have lily livered lazy citizens that lay down and take it.

      The lack of protest, or concern for the future is just degrading.

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    • Like Greece! Sad but true.

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    • I really do believe that any kind of protest/civil disobedience can not succeed unless there is a combined international movement. ‘Wild cat’ protests and disruption of political events organized through an international network – #Occupy.
      It will be also apparent from here that while the public service aspect of policing will be cut back (closing of police stations etc.) the pay and conditions of individual members and funding towards the public order aspect will be maintained and increased.
      Your vote only counts when it’s counted.

      Reply
  • @Gary You look ridiculous. Every one of your ignorant brainwashed contributions here have been totally nullified. Not just by the many contributors here who have corrected you, but indeed by TheJournals breaking stories outlining the planned depletion of corporation tax, referendums, further loss of Sovereignty. I have read your rants here on previous occasions but refrained from replying to you. Everything you write we have heard before Gary, from all the lying Politicians and EU propaganda. Give it a rest buddy, you have the sting of a dying wasp and its pitiful to watch.

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    • hehe. I’m not sure name calling and going ‘la la la you’re wrong’ is what I’d call nullified. But hey believe whatever you want. I’m only interested in seeing the facts get posted, something that we should all welcome. Too many in here have an agenda, they have a bias and they’ll latch on to any statement to show how they were right all along about the EU really trying to steal our babies. Posting figures that show the German banks in the IFSC, money which we’ll never owe is not nullifying anything. Not understanding the difference between tax base and tax rate is not nullifying anything.

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    • I fairness Paul your statement applies more to you than Gary. Just because you say something doesn’t make it true. You would do well to remember that.

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  • Éire is dead.

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    • Anyone reporting on the Merkosy open letter to Van Roumpy? They have both come out and asked for “Tax harmonisation” – - Wave goodbye to our Corp. Tax rate, our one economic advantage. FG/Lab govt haven’t the balls to stand up to them.

      Reply

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