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LAST WEEK, THEJOURNAL.IE issued a callout to you, our readers and fellow citizens and voters, on the question of the Fiscal Compact referendum.
We wanted to know what YOU wanted to know about the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (official title).
First, we picked the most commonly-asked questions you submitted on points that you didn’t understand or wanted clarified in the wording of the treaty.
Then we posed those questions to two independent bodies here (the Referendum Commission) and in the EU (the European Policy Centre), as well as to a representative each of the ‘No’ and the ‘Yes’ side.
Click here for answers from all sides.
HERE: Finance spokesperson for Sinn Féin and ‘No’ campaigner, Pearse Doherty, answers your questions:
What is NEW in this treaty for Ireland?
The Austerity Treaty takes the existing debt and deficit rules from the Masstricht Treaty, adds new rules arising from the EU six pack legislation of 2011 and toughens these rules with a number of new enforcement mechanisms. It imposes a harsher structural deficit rule on national economies; gives the European Commission new powers to impose budgetary policies on countries deemed to be in breach of the rules; and gives the European Court of Justice the power to impose fines where states are deemed to be in breach of the obligations of the Treaty. It is a fiscal straight jacket which means more austerity and less democracy.
Can Ireland still access the EFS Fund regardless of what way the vote goes?
Contrary to the claims of the Government, emergency funding from the European Union will be made available to the Government if it requires it in 2014. This funding will come from the European Stability Mechanism. Articles 3 and 12 of the ESM treaty state clearly that funding will be provided where it is indespensible to safeguard the financial stability of the Euro area as a whole. While the ESM contains the blackmail clause linking ratification of the Austerity Treaty to accessing emergency funds, the Government has the power to remove this clause if it so wishes.
It has chosen not to because it wants to use the blackmail clause to frighten people into voting for the Austerity Treaty. People should be very clear, if the Government requires emergency funding in 2014 that funding will be available from the ESM. Failure to provide such funding would be legally in breach of Articles 3 and 12 of the ESM Treaty. It would also jeapordise the financial stability of the Eurozone as a whole.
A figure of €11 billion has been suggested as Ireland’s maximum input into the ESM. Does the ESM have the power to increase this figure if required?
When the European Stability Mechanism is established the liability of the Irish state to the fund will be €11 billion euro. Initially €1.2 billion will be paid up front. Additional funds will be made available as requested by the ESM. It is also important to state that unlike the EFSF fund that is providing our emergency funding at present, there is no exemption for countries in a bailout programme. This means that even if we are in a second emergency funding programme from 2014 we will still have to contribute to the ESM.
If we do require funding can the ESM set additional austerity measures as part of the agreement to provide funding to Ireland?
The ESM treaty states that funds will be provided on the basis of strict conditionality. It does not state what these conditions would be but it is clear that they will be similar to the austerity conditions imposed by the troika under the current deal. These are the very same conditions that are blocking a return to economic growth. If a second round of emergency funding is required in 2014 it is incumbent on the Government to negotiate a better deal that they have done so to date.
If we vote Yes in this referendum, is the treaty being added to our constitution?
No, the referendum seeks to give the Austerity Treaty constitutional protection. If passed the legal obligations contained in the Austerity Treaty will have have precedence over our Constitution.
If we ratify the treaty and then the wording of the treaty is changed afterwards, will the same amendments apply to us?
This is very unclear. While the Government claims that the text of the Treaty will not change the negotiations in Europe are ongoing. We will not know until whether the Treaty is changed until after our referendum. What is clear is that a growing number of national parliaments including France and germany are refusing to ratify the Austerity Treaty as is. Clearly there is a demand for change and the final version of this Treaty may well be different to what we are voting on tomorrow.
The Taoiseach Enda Kenny said after the informal summit in Brussels this week that there can still be a growth deal among EU countries, completely separate to the fiscal compact. Is this possible?
No it is not possible. Austerity is blocking growth, in Ireland and across the EU. Our economy is now officially back in recession, as is the Eurozone. Unemployment remains at 14%, with Eurozone unemployment at a historic high. Austerity is making the crisis worse. You can not ride two horses at the one time. Tomorrow people have a clear choice, if you support austerity vote yes. If you want a new direction in favour of jobs and growth vote no.
What interest rate will the ESM charge? Is it ‘at cost’ as some in the ‘Yes’ campaign have claimed?
This has not been decided yet. During the negotiation of the ESM Treaty it was proposed that ESM funds would be provided at a 2% to 3% markup above the market interest rate. However this proposal was removed from the final version of the ESM treaty. The claim by the yes side that ESM funds would be provided at ‘cost’ is entirely false.
The treaty refers to “Structural Deficit”, but it doesn’t define the term. Some economists are worried that the term is undefined. Could you please define “structural deficit” and provide a definitive explanation as to how exactly it is measured.
The structural deficit is not a measurement it is a judgment. It takes the actual deficit and adjusts it to take account of where it is believed the economy should be rather than where it is. There is no agreed definition of what a structural deficit is nor how it is to be calculated. It is also subject to constant revisions. In the context of the Austerity Treaty it will be the European Commission who determine what the structural deficit is and how it is measured.
The treaty says: “In the event of significant observed deviations from the medium-term objective or the adjustment path towards it, a correction mechanism shall be triggered automatically. The mechanism shall include the obligation of the Contracting Party concerned to implement measures to correct the deviations over a defined period of time.”
Who defines what a ‘significant deviation’ is; what are the “corrective measures”; who is to define the period of time?
The answer in each case is the European Commission. They will determine the extent to which a Government has breached the rules and the steps to be taken by the Government to “correct” what the Commission defines as the problems. The Treaty gives the European Commission significant new powers to impose detailed budgetary and fiscal policy prescriptions on member states deemed to be in breach of the rules. This will mean less power to the Oireachtas and more importantly less power to the citizens.
Is there provision for any circumstance that any individual or group of countries to opt out of this treaty in the future?
No, once ratified this Treaty places legally binding obligations on this Government and all future governments until such time as all of the signatory states agree to amend the Treaty.
Answers from the Referendum Commission>
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It speaks volumes that we have had the leader and other members of Sinn Fein argue and debate competently their party position for a no vote, whereas the best the leader of the yes campaign could manage was to cower behind a telepropmpter reading scripted soundbites.
Proof, as if we needed it, that theres noting in the treaty worth voting for, only blackmail, threats and lies.
Indeed threats, blackmail and lies like vote YES for more Austerity, vote NO for sunshine and magic money trees
Denis, show me ONE quote from anybody involved in the ‘no’ campaign claiming that a ‘no’ will end austerity or allow access to free, or even cheap, money. Just one.
Our first government risked their lives for Ireland our current government and their supporters won’t even risk their lifestyle. They’d rather twist their caps and cower to the EU\ECB and sell our freedom so dearly bought to be sure of their pensions. If Fine Gaels hero Collins was alive to-day he be organising a new rising against Enda and his pals.
@TTL
You don’t need to go any further than SF’s election poster “Austerity isn’t working. Vote No”.
The clear implication of this is that voting no offers an alternative to austerity, so they’re either lying (by saying there will be no more austerity following a no vote) or deliberately trying to mislead voters (by implying the same). Which is it?
Inocrrect mattoid, it is a no to the policy of austerity, not ‘vote no to end austerity’ and that just is not the same thing, but we all know that don’t we? Mary Lou has made it perfectly clear that we need to grow our way out of austerity via stimulus, she has never once claimed that a no vote would in itself end austerity. At least she can explain herself, unlike the ‘yes’ campaign:
.Noun-Verb-Stability…………Noun-Verb-Growth………..Noun-Verb-Confidence………Noun-Verb-ESM….Oh wait, the other side are talking? SHOUT……SHOUT……LIAR……SHOUT……SHOUT…………..SHOUT……SHOUT……etc
@TTL
OK so you’ve acknowledged that a no vote will also mean continued austerity. With that in mind will you now also acknowledge that the SF posters were deliberately designed to be misleading?
No, and I explained why in my previous post when I corrected you. Do you honestly think repeating the same falsehood over and over is going to help you out here? You’re not a fine gael TD, y’know….
That a sole policy of Austerity, as Europe and Ireland have been following doesn’t work is basic economics. It is also a key fact from economic history.
The SF referendum leaflets are only misleading to stupid people.
@Ann
I completely agree with you, but we all know there are plenty of uninformed (I prefer to use that word instead of “stupid”) voters out there, and it is these people who are being targeted with the slogan.
Only for Sinn Fein this goverment would make the poor old and sick suffer more cuts.
Too true left. “Mary loo explain herself ” you have got to be joking! She can duck and dive alright and avoid straight answers as on prime time on Tuesday. But talking over people and going off into realms of fantasy doesn’t count as explaining in my book.
Must have been watching a different debate to me mcbab. The debate I saw involved the total and utter decimation of a certain joan burton. Where was fine gael, the leading ‘yes’ party, by the way?
mcbab
the same individual who called a small innocent child a ”shinner” disgraceful. your level of morals appear questionable to me , so you have no moral backbone .
If there are parents out there who vote yes in this treaty and later realise that they have actively participated in sending our country further down the road to serfdom yet again how will they look their children in the face when their sons and daughters campaign in years to come to try and win our sovereignty back? It will be a shame they will take to their graves.
I agree how many irish people in the future will admit to their children that they voted yes to this treason.
Sadly when have Irish parents ever complained about mass emigration. We are a familial people but by God we let others walk all over us, especially if they are from a distance and in a suit.
My own children know where I stand , they have seen me canvass, c hair meetings, give speeches and I must say have told me how proud they are of me.
Got as far as “Austerity Treaty” and stopped reading. How hard is it to stick to facts instead of bullshit, scare tactics and hyperbole? It just seems childish and detracts from any valid points that Sinn Féin actually might have. Not that the yes campaign isn’t at the exact same thing mind you.
Same here, both campaigns are just so terrible. As has always been the case with these treaties neither side wants to stick to what it’s actually about to convince voters their side is the one to go with.
if you can’t be convinced with the facts, what else do you want sf to do for you? they are talking in facts but if you are used to hearing bs from fg and usually believe it, it might be hard for you to know the truth when you see it. the one fact alone that should convince you to vote no is that our constitution can be over-ruled by the treaty when it suits the e.u.
VOTE NO! NO! NO!
Considering he couldn’t even get the name of the bloody treaty right in his first sentence I wouldn’t be so sure about his “facts”. Our constitution can’t be over-ruled by the E.U. whenever it feels like. Yes, the terms of the treaty would take precedence over any conflicting articles of the constitution – not whatever they dream up whenever they feel like it.
I will be voting no (as I simply don’t believe it will work – taxing our way out of a downturn is not the answer), not for any of the scare mongering reasons SF have been spouting.
what ever about yes or no arguements one very serious part of the treaty that got little or no discussion is where the whole administration is immune from investigation, accountability, or prosecutation under any law or entity. This is like any dictator in history only worse as we are agreeing in advance that it’s acceptable.
Obviously Sinn Fein have picked up the habits of their partners the DUP and will now say No to anything which can help the country progress.
have your say