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Fiscal Compact and European Stability Mechanism

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In the event of a Yes vote [in the forthcoming referendum on the Fiscal Compact], the Government would be entitled to proceed with ratification of the ESM treaty as this would reflect the democratic will of the majority of voters.

However, in the event of a No result, Ireland would be cut off from ESM funding because of a condition within the Fiscal Compact. Whilst Ireland doesn't have a veto on the Fiscal Compact, the Government could easily defer ratification of the critical ESM treaty over which Ireland would have a blocking vote if supported by other States who together contribute at least 8.5% of the ESM's capital. This would force the EU and ECB to offer meaningful proposals to ease Ireland's unfair and unsustainable bank debt burden which, to date, has been effectively ignored by them.

Arguably, this could lead to a second referendum on the Fiscal Compact which might also lead to ratification of the ESM treaty.

Letter published in the Irish Times on 2nd May 2012.

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This page contains a single entry by Brian published on May 4, 2012 10:38 AM.

Mahon Tribunal was the previous entry in this blog.

Message to TDs about European Stability Mechanism is the next entry in this blog.

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