- ESM Funding: This is the main reason being given by the Yes side to vote yes. Basically they claim that we need to ratify this treat in order to access bailout funds in the future from the new European Stability Mechanism. But if a second bailout is necessary we have until April 2013 to claim from is predecessors, the Financial Stability Mechanism(EFSM) and Financial Stability Facility(EFSF). Not to mention a huge chunk of these bailout funds are being used to service the Irish banking sectors debts which the Irish Government took on during the collapse of the Banking sector. This is an area where the ECB has a lot of vested interest, so they wouldn't want to deny Rescue Funds for fear that Ireland would default on these debts.
The inclusion of ESM funding into this Fiscal Treaty is nothing but an attempt to bully countries into ratifying it by putting a gun to their heads. Though voting Yes will not even give us the right to this funding, only the right to apply. The idea though that emergency funds would be denied because of a No vote though is nonsense. As Michael Taft has pointed out the granting of Emergency Funds will be decided on what ensures the stability of the Euro, not the result of this referendum.
Basically a Yes vote wont guarantee ESM Funding any more than a No vote.
- Austerity: Voting No will not stop the current Austerity being pursued by the Irish Government. The posters by the likes of the ULA are completely misleading when they say things like "Vote No to stop Water and Household Charges". Its nothing but electioneering on their part and they ought to be ashamed about the way they have run this campaign so far. Neither will voting Yes make the Austerity we are facing in the next few years any worse for that matter. This is about the future.
By linking a country's Debt Celling to GDP it means that the next time Ireland finds itself in a recession it will be forced to impose Austerity in order to balance its budget in line with conditions within this Treaty(ie Deficit of less than 3% of GDP and overall debt bellow 60% of GDP). This German ideal of balanced budgets just is not going to work for the Irish Economy. It also will do nothing to prevent the kind of reckless actions pursued by the Fianna Fáil Government, as despite their low taxes and high spending the strong growth of the Irish Economy during that time meant they would of never violated these conditions had they been in place. Where this will come into play is when the economy is weak.
Since Franklin D Roosevelt the common sense approach to recession has been Government stimulus to compensate for the lack activity in the economy. This is in line with John Maynard Keynes' attitudes to perusing Expansionary Fiscal Policy to achieve economic growth to, though the Fiscal Treaty will effectively rule this out as an option for countries.
Aren't these things already in place though? Yes, through the EU's Sixpack agreement countries must reduce their budget deficit to 3% of GDP and national debt to 60% of GDP. Thats why the Government is imposing its current austerity agenda, to bring us in line with those figures. The fact is though, that its not working. The Fiscal Treaty will make sure that countries follow this Austerity Agenda, failing to do so will result in fines being imposed on dissenting countries.
On top of it not being Economically viable, Austerity also hurts communities and the most vulnerably in our society. We cannot let it become enshrined into European Law.
- Going Against the rest of Europe: All across the EU recently, when the people have being given the choice, they have rejected Austerity. It has recently been seen in the collapse of Pro-Austerity Governments in France, Greece, Romania and German states of
North Rhine-
Westphalia and Schleswig-Holstein. Now it is Ireland turn to say No to the neoliberal agenda being pursued by the EU.
Nobel Prize wining economist Paul Krugman has pointed out time and time again how flawed the EU's policies towards the finical and debt crisis have been. Now though there is a sign of change, growth and expansionary policies are for the first time starting to be put on the agenda. A Yes vote will signal Ireland's willing to go on with the status quo of endless cuts in an attempt to maybe possible make our economy more attractive for private investment.
A No vote though will show that Ireland has had enough, it will show that we can't wait for private investment. We need direct and public stimulus of our economy now if we want to return to growth. This platform is gradually making its way onto the European agenda, its time we as a country throw our full weight behind this charge. So lets say NO to the status quo.
This is why I'm voting No. Its not about saying yes or no to Europe, is about the kind of Europe you want to see. The Irish people should follow their fellow Europeans in giving this kind of Europe a resounding NO.
Did you read what you even wrote?!
ReplyDeleteESM Funding - Whoo we are sorted till 2013. That'll teach em. Oh wait. What happens in 2014? Or 2020? Or 2030? Hrmm. Didn't think of that. Yikes.
Austerity - Now that's a new allegation. This treaty isn't designed to be used during a recession. If anything its designed to stop a recession. We cant spend above and beyond our means with the new fiscal rules. These targets you refer to, are not new. We already agreed to them. Research clearly not done here either. Oh wait, but you sneak it in at the bottom! Clever, but not enough. If we walk from this, those figures remain. We are cutting and saving left right and center because its part of the EU/IMF bailout and its required to get the books more balanced. What else do you propose? Keep spending and hope it will eventually balance itself out? Austerity isn't failing. It needs to have a counter part - a growth pack. Hopefully we will see this soon.
The Rest Of Europe - New French President is "business as normal". Everywhere across Europe where times are bad, the government responsible during that time is being kicked out. Ireland had our chance to do likewise. We booted out Fianna Fail. This is not a vote against Austerity, its a vote against the governments being utter fools in government.
A Yes vote will signal we are happy to obide by common sense fiscal rules through a new means - the EU Courts, a Yes vote will tell investors we will be a leading stable economy that is recovering better than most (so far and beyond) and will help Ireland continue to grow and the jobs figure to rise even further (4k this year alone). A No Vote says "No Thanks" to the EU Courts, but everything else remains the same. A No vote risks "Where? How? What rate? What Terms? Who knows?" situation in terms of a bailout in the future. Our Bank Debt can be dealt with much better if we are shown to be complying and playing ball - to a point. Help us, or we wont play ball and you will have even more problems on your hand.
Lets get real here. Europe isn't perfect. This isn't the answer to our problems. A vote either way will be business as usual and it will be sometime before the main EU Leaders get some balls and do something about it. But lets try improve our fiscal guidance, and that's only what this treaty is about. Ignore the bullshit hysterics.
You really should of read after the 6th line in my first point... "Didn't think of that", clearly I did!
ReplyDeleteWere are fiscally constrained by the EU/IMF Deal... but if we weren't receiving a bailout we'd still have to get our figures in line with European demand. Once a country's economy is strong there is nothing to stop excessive spending, the suggestion that this would prevent the kind of actions by the previous FF are just wrong.
As for a growth pack, small growth measures added to the existing treaty will be useless. What is needed is a Europe wide change of direction towards expansionary fiscal policies.
The Greek Socialist PASOK party were put into office in 2009, they did nothing to cause the Greek debt crisis but because they inflicted austerity. This isn't just people voting out useless governments, its a clear signal that people have had enough.