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Dublin: 11 °C Thursday 20 June, 2013

‘The ESM for legacy bank debt should be allowed’ – former AG Peter Sutherland

The current chairman and managing director of Goldman Sachs International also said he saw no reason for Ireland to change its corporation tax rate.

Peter Sutherland (file photo)
Peter Sutherland (file photo)
Image: Sasko Lazarov/Photocallireland

A NEW REPORT, produced to coincide with Ireland’s current presidency of the EU and the country’s 40th year of membership, has been released today.

Containing interviews with Peter Sutherland, Pat Cox, Lucinda Creighton and Micheál Martin, the report – Forty Years A-Growing – An Overview of Irish-EU Relations – by Notre Europe – Jacques Delors Institute, was produced with the aim of grasping the “specificity and subtleties of the Irish debate on Europe, both historically and in its most recent developments.”

In his interview, the former attorney general and current chairman and managing director of Goldman Sachs International, Peter Sutherland, believes that Ireland is still largely pro-Europe.

EU membership and the Irish people

Describing thoughts of joining the EU in being one of “considerable pride”, Sutherland believes that many people saw it as a way of gaining financial independence from the UK and that it helped us to form a “separate identity as a people.”

Believing that a “general positive view” still remains, Sutherland ‘regrets’ some of Ireland’s ‘exceptional positions’ within the EU, such as the stance on neutrality and the ‘unfortunate outcomes’ where Ireland voted no in certain referenda, only to vote yes in subsequent ‘replays’.

Ireland’s neutral position

The former AG believes that Ireland’s neutrality became sacrosanct following the country’s official non-participation in World War II. Putting the moral imperatives to one side, Sutherland felt that Ireland’s weak economy at a time had also prevented participation at a national level.

Since then, however, he believes that the threat of Ireland’s neutrality has been ‘exaggerated’ in referenda, when no threat was posed.

Open to an increased role, Sutherland said that his personal belief was that Ireland should deepen its integration with Europe, which would also include the areas of foreign policy and security.

Ireland’s mixed messages when voting on Europe

While being irritated by other countries desire to lecture Ireland about how, “having done well out of Europe, we now reject it”, he finds this point understandable, due to how we “profess to be great believers in European integration and then apparently vote against it.”

Referendums have also been held when they may not need to have been, according to Sutherland. Describing the Crotty judgement as having led to referenda for “virtually every European treaty change imaginable”, there have been some instances where the State has gone to the polls on specific issues which he believes were not “fundamental principal issues”.

Did the Fiscal Compact Treaty contain a ‘blackmail clause’?

With access to the European Stability Mechanism (ESM) dependant on voting yes, Sutherland disagrees that this was a form of blackmail. “I turn it on its head by asking: is a country allowed to blackmail everybody else by stopping their progress?,” he said, believing that no one country should have the power to veto any moves toward greater European integration.

On this point, he believes that the UK is now in a position where it is “perilously close to leaving the EU” – a strategy that Sutherland does not understand.

Is Ireland’s denouncement of austerity damaging the EU’s view of the country?

Describing Ireland’s “negative reactions” as ‘understandable’, Sutherland said that constructive engagement can fall by the wayside when a country is “suffering pain”.

Despite the negativity, he believes that Irish people still see EU membership as being “a vital positive for our future.”

Sutherland continues to see Ireland’s positives – which includes our membership of the Eurozone and the fact we are an English-speaking country – while believing that the country instead needs to focus on what he believes are the “real challenges”:

The most important policy area for our future has to be education and there are real challenges here, particularly at second and third level, where our rankings by OECD and various indices are not good.

All things considered, Sutherland still believes that Irish people make “discerning judgements” and that the belief still exists that greater European integration “increases our influence over our own destiny and therefore, in a way, our sovereignty.”

Is the European project under threat?

Sutherland’s personal belief is that the Euro will survive, even going so far as to have “some sympathy for Mrs Merkel’s efforts,” adding:

She is trying to solve in a lasting way the problems of a continent and to bring her people with her. This is not easy but it is, I hope, at a stage where we may begin to see real progress.
The basic issue is that Europe cannot survive in a globalised world without being competitive. Nor can it survive with accumulating debt.

With Europe having gotten to a “certain stage of danger as we are now”, Sutherland remains unconvinced that enough has been done to prevent contagion.

Hopeful that the ECB will continue to play an important role, he believes that “some interventions” by the president of the Bundesbank “have not been helpful” – views which have “not been supported by Mrs Merkel.”

Legacy bank debt

Asked whether he understood Germany’s rejection of the ESM being used for legacy bank debt, Sutherland’s answer was short and to the point:

I believe that the use of the ESM for legacy bank debt should be allowed in one way or another.

Ireland’s corporation tax

Sutherland does not see Ireland as having to alter its corporation tax. Wondering why this single tax continues to be the focus, he wonders why questions aren’t being asked about the subsidies that richer countries have pumped into their own industries.

“If you start saying that tax raising in particular areas, or the spending of national resources, has to be done in exactly the same way throughout the European Union, the European Union will not survive,”he said. “The changes required will never be agreed.”

A federal Europe

“I’m a federalist who believes in subsidiarity,” Sutherland said.

While believing that joint decisions should be made in relation to broad issues, which includes defence and monetary policy, he believes that decisions related to culture, social systems and education should continue to be decided at the national level.

In-full: The interview with Peter Sutherland >

Read: ‘Respectable case to be made for debt write-off’ – Pat Cox >

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Comments (28 Comments)

  • One of Lucinda Creighton’s contribution to this Report was sowing the seeds for military cohesion in EU. She’s quoted as saying ““We have developed this perception of ourselves [Ireland] that to be neutral and to not engage in any sort of common defence is a badge of honour”!

    I can almost hear Sutherland’s half cough/half laugh when he says threats to our neutrality has been exaggerated in referenda.

    This guy is a former failed FG candidate who was then appointed AG. Much more money in the business world tho, especially since he’s secured a place on the Steering Cmt of Bilderberg group.

    These ppl don’t give a sh!t€ about Ireland or us getting a deal. These are the ppl who call us “Ireland Inc”! A cog in the great Corporate machine. Meh!

    Reply
  • 04/02/13 #

    ‘Interesting’ roll out an old FG, attorney general, former AIB chief, chairman of BP, and chair of Bank of Scotland to pat us all on the head yet again and say what good little Euro-files we are – especially after we swallowed all the Goldman Sachs advice on paying back bondholders – nice bill we paid here too! Constructively ‘Suds’ the pain tells us what’s hurting so we stop doing it’ – and tell me where is you and your FG friends are hurting – not in your pensions that’s for sure.

    Reply
    • Peter Sutherland receives a pension of 51k euros a year from the Irish taxpayer, in return for his work as AG in two 1980’s FG goverments (both coalitions with Labor as I recall, they had only one idea: increase taxes – if it doesn’t work, then increase taxes again).

      As stated, he is chairman of Goldman Sachs, the bank that has claimed to be doing “Gods work”.

      A true “patriot”?

      Reply
    • ISBA 04/02/13 #

      Suds is part of the problem not part of the solution – doubt he could even spell austerity…….

      Reply
  • “The way the bankers have kind of toppled the way money is distributed, and taken most of it into their own hands, is as good as Stalin and Hitler” – Mario Batali

    Reply
  • Why do we continue to listen to one of the key players in Ireland’s demise, and who’s continuing to be a key player in the demise of the world economy.

    Europe might have been beneficial for Ireland, but it has being more beneficial for certain individuals than for the society as a whole from what i can see.

    Reply
  • mart_n 04/02/13 #

    Am I the only one a little bit perturbed by the fact that 2 regular Bilderberg attendees are coming out with this stuff?

    Reply
  • In my opinion of course we should stay neutral. Nothing to do with world war 2 more to do with the Blair backing bush and starting illegal wars. I’m totally for peace keeping missions and humanitarian missions but certainly not starting illegal wars and killing hundreds of thousands innocent civilians.

    I am also in very much favour of the referendums. If we didn’t have them them we wouldn’t have any say in anything. It’s that extra bit of democracy. We rejected treaties as got concessions and voted again. It’s a lie to say we voted on the same thing twice and changed our mind.

    Reply
  • European integration Peters buds in Goldman/Sachs integrated Greece into the E.U by cooking the books .Anyone who does not think Greece was put in to the E.U to start this crisis would want to look into what Goldman/Sachs are all about.The man in charge of Greece,s debt department also a Goldman/Sachs ex employee along with Mario Draghi Mario Monti.Set it up leave in a rogue tax nation hide their debt then bring their debt to light start a financial crisis get the people to bail out the banks leaving not a cent to run the country go ask the the guys who set it up for money they will say ya but on on terms fiscal budgeting therefore taking over government of set country. Do that all over Europe one by one until you have independent nations trapped in a federal Europe with the banks having all the power over governments and ultimately bring in their Banking union that they wanted all along as a preset to a world currency which is what they really really want.World Currency World domination . CONJOB all the way put in place along time ago played out all along until they have their way through the co operation of the willing masses.

    Reply
    • Derek 04/02/13 #

      Nail on the head! This whole thing has been planned and orchestred with a long time plan not to draw direct attention but leave the consequences of such actions take the limelight for furthering the next step in the end goal like dominos.
      Their biggest hindrance still will be Asia especially china even though talks have been taken place over the last few years discussing a single Asian currency but that won’t be so easy to implement with the wide variances between national currencys.
      People fail to step back and see the actual global picture/ progression of their planned actions but are kept distracted by the continuous small issues that are a result of these steps presented as national or continental problems.

      Reply
    • Jack
      You’re a little bit too old to be reading fairy stories. Next you’ll have us believing that if we walk on the cracks in pavements bad luck will befall us! Would you ever grow up.

      Reply
  • Shows without doubt in his own words a federalist to the core like all FG servile lackeys. Part of an organisation that helped Greece join the Euro and we all suffered from this mess.FF/LAB espouse the same mindset. Traitors all

    Reply
  • One of our most effective and destructive brethren

    Reply
  • Instead of a definition, all dictionaries should have a picture of this mans face next to the term “fat cat”

    Reply
  • It’s always great fun to hear eurocrats complaining about the Crotty judgment.

    There’s an easy way to solve it: put reversing Crotty to a referendum. Then you wouldn’t have to mess about a referendum every time the EU wants to enlarge its powers.

    The political elite does not do this. Why? Because the public would never accept it. We quite like the idea of not giving up powers without getting a say in it. It’s called “democracy” – and the right to decide what powers the state or a superstate has are actually quite important. When powerful people oppose this, it tells you just about everything you need to know about them.

    Reply
  • Like Pat Cox, Suds is something that should have been thrown out with the wash a long time ago.

    Reply
  • Read a book Alan . He’s a very influential evil man .

    Reply
  • Goldman Sachs could direct this to be done, if it truly wished.

    Suds says one thing but he means the opposite.

    Reply
  • 4 pro Europe interviews, all part of the softening up process for the lack of a deal on promissory notes.

    Reply
  • Tommy 04/02/13 #

    I like the look of the Peter Sutherland School of Law that is being built in UCD :L

    Reply
  • Peter who?

    Reply

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