Clare Daly (Dublin North, Socialist Party)

It is clear that the key issue before the European Council is that relating to the austerity treaty. In a certain sense, we are operating in something of a vacuum because we have not seen the final draft of the treaty. However, we have a fair and clear idea of what it is going to contain. An article in today's Financial Times indicates that Frau Merkel of Germany has decided that she may like to consider the idea of allowing the EFSF to use its funds in parallel with those of the ESM which the European Union hopes to launch in July, but that, in return, countries must sign up to the rules relating to the cutting of budget deficits and public debt in a far tougher way that has been speculated upon up to now. There are reports that phrases and provisions which would have allowed countries to breach the deficit limits being spoken about in the context of the treaty in periods of economic downturn were being considered. These phrases and provisions are deemed to constitute an escape clause by the ECB which wants cast-iron guarantees and rules to apply in any new scenario.

There is absolutely no doubt that the treaty revolves around institutionalising austerity throughout Europe in perpetuity. What is being done is taking place in the context of a further diminution of democracy and will involve a transfer of powers from national governments and ordinary people to the European Commission and so on. The Government has some audacity to consider such proposals in the absence of a referendum. It is something of an affront for the Taoiseach, the Tánaiste and a number of other Ministers to spuriously state there is nothing new in the treaty, particularly when what is being considered goes beyond anything seen previously. What is at issue is the provision being made providing for permanent oversight of economic policy, as well as certain fiscal arrangements. That is a fundamental departure.

Imposing fines amounting to hundreds of millions of euro on countries which are already struggling to cope with circumstances of the worst kind would be a sick joke. The imposition of such fines will have profound implications. There is a political obligation on the Government to put these issues before the people. However, it is trying to engage in a cover up and do everything possible to prevent the holding of a referendum. If the Tánaiste is so confident that the steps being taken are correct, why will he and his colleagues not debate the relevant issues with us and the people? Such a debate would not revolve around whether we were in or out of the European Union, rather it would focus on the type of Union we wanted to see develop. Like the Italians who are on strike today and the Greeks who are facing vicious austerity, we are more concerned about a European Union that is run in the interests of the people rather than those of the elites and the banks which are being protected.

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