Why I'm voting NO

So with the Fiscal Compact Treaty Referendum this week I'd just like to say why I'm voting No and also hopefully convince you likewise.

• 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.

Fiscal Compact Treaty(my Left Tribune Article)

It is no surprise to look around Europe and see a cohort of right-wing and conservative governments seated around the European Council after reading the fiscal compact. This is because the measures contain in the fiscal compact seek to make progressive economics illegal in Europe forever.

The fiscal compact seeks to force countries into a fiscal straitjacket by maintaining a balanced or surplus budget by limiting their deficit to 0.5% of gross domestic product. What Ireland’s finical problems have told us that the “if I have, I spend it” attitude that enforces pro-cyclical economics is deeply flawed. It is the consensus of the Left that austerity does not work. It acts to further supress the economy and limits the opportunity for growth. We know that what is needed is an investment lead recovery; it’s the best and fairest way of returning to economic prosperity.

We on the left know that expenditure cuts disproportionately hit low income earners. It is important to remember that we are where we are due to neoliberal policies and the right in Europe want us to give them another chance. Despite knowing that investment is fairer on society than austerity it also makes more economic sense too. At the moment consumer confidence is low and no matter how much the government call on people to spend to help stimulate the economy, it is unreasonable to expect them to do so whilst they are experiencing increasing financial burdens with the constant fear of losing their job. That’s where a sensible government needs to step in and spend countercyclical to kick start the economy. You can’t cut your way out of a recession, but you can certainly grow your way out.

There for the name ‘Growth and Stability Pact’ is hugely misleading, as this is the exact opposite of what this treaty seeks to have implemented across Europe. The imposed debt ceiling will mean that as countries’ economies go into decline they’ll be legally obliged to reduce their deficit, ie impose austerity. In the aftermath to the Euro crisis we were told that it was impractical to have a monetary union without a fiscal union.  It now is being sold by European leaders, including Enda Kenny and  the Irish Government, as a measure to stop governments going wild with spending as the Irish Government did from 1997 onwards. This is not the case at all, that was pro-cyclical spending the kind of economic policy this Fiscal Compact would see institutionalised. In the aftermath to the Euro crisis we were told that it was impractical to have a monetary union without a fiscal union. Minister of State for Europe, Lucinda Creighton was quick to defend such a move with the promise of Eurobonds and support in the form of stimulus from Europe. None of this has come to fruition due to unwillingness by the German government look after its own self-interest.

They are instead making it illegal to pursue countercyclical economic policies though an imposed debt ceiling linked to GDP. So basically when the economy is in recession the government will not be allowed to stimulate to compensate for a fluctuating economy.

We are now also being told by Michael Noonan and Brian Hayes that is necessary for Ireland to approve this treaty to avail of bailout funds in the future. As a member state of the International Monetary Fund though we are not solely reliant on the European Commission and European Central Bank to lend us money in desperate times. These are after all the intuitions which contributed to Ireland’s banking sector collapse and now are willing to see the Irish people burdened to protect their vested interests. Another piece of propaganda is the selling of the vote as a referendum on our Euro membership. Nonsense once again. There is an obvious need to solve the Euro debt crisis, no one is denying that, but we are saying there is a better way. A way the left should be advocating that includes economic stimulus, Eurobonds and a financial transaction tax as part of a new progressive European agenda. It’s the common sense approach. Neoliberalism has failed, why are we so insistent on letting it guide us out of this crisis.

The entire treaty is based on the right’s opinion that the only way to achieve economic growth is to inflict austerity in the hopes it might create the conditions necessary. Ridiculous if you consider austerity will damage the economy beyond repair whilst hurting the most vulnerable in society. We are not just being asked to give neoliberalism another chance, but to enshrine it into European law and actually make a Keynesian and expansionary alternative unconstitutional.  We ought to tell them no.