Clare Daly (Dublin North, Socialist Party)

Today, The Irish Times quoted Merkel saying the discussions over the weekend represented a masterpiece. With the exception of the Taoiseach, not many other people agree with the comment. Ordinary people across Europe who have been bearing the brunt of austerity have a very different perspective on the discussions taking place. The title, Treaty on Stability, Co-ordination and Governance in the Economic and Monetary Union, might be quite a clumsy mouthful but it is a simple proposition. It is a proposition to enforce institutionalised austerity, which people throughout Europe have been organising against. Is it any wonder that, in order to bring in these policies, we have seen a shift from democratic rights and entitlements throughout Europe, with the imposition of Governments of technocrats and bankers in Italy and Greece? The trappings of democracy have been discarded and our Government is no different because the dogs on the street know that the only purpose of the negotiations of the Taoiseach's team was to manoeuvre a situation whereby Irish people are denied the right to have a say. Is that because the Government knows so much better than all the plebs sitting at home and has all the answers? Everyone knows the reason is that the Government is afraid that people suffering under the programmes being initiated will not tolerate the continuance of these policies. The Government would prefer to take the flak by hiding behind legal manoeuvres in order to avoid a referendum. However, the Government will not get away with it and it will be put under massive pressure inside and, more particularly, outside the House. The issues are too important.

What is being considered is not a minor tweaking of existing practices; the clear agenda is to institutionalise austerity and undermine democracy. One of the key provisions is the balanced budget and the attempt to outlaw any deficit greater than 0.5% of GDP. This is to outlaw expansionary fiscal policy and to enshrine the type of slash and burn policies implemented with such devastating consequences over the past number of years rather than policies of borrowing to invest in public works, create jobs and redevelop the economy. It is not just the lunatic left fringe that makes these points but also respected economists and Nobel prize-winning economists. Joseph Stiglitz described the discussions last week as "a mutual suicide pact", "the medieval practice of bloodletting", which will only make the situation for the patient worse. Any chance of recovery will be severely hindered by this deal. It would be a disaster to continue the policies that have failed so badly. A crucial component of this measure is the move to further economic governance, which takes significant budgetary powers from elected Governments to the unelected European Commission and the European Council. There are also massive fines for those who breach the targets. There is already a major problem in this country and other so-called democracies with political parties getting elected on a platform, coming to power and then doing the complete opposite of what they were elected to do. Can we imagine a scenario, against a backdrop of this treaty being voted for, where the same people shrug their shoulders, say there is nothing they can do, that they have no powers, and they are in place as the pet poodles of the European establishment?

One of the reasons these measures undermining democracy is being imposed is because governments feel the pressure from mass movements of ordinary people organising against austerity throughout Europe. Is it any wonder, when one considers the situation in Greece with youth unemployment at 50%? Surveys show that 91% of households have had a cut in income, the majority of which have taken cuts of 30%, and 78% of families are really struggling. There was the biggest general strike in Portugal since 1974 and a general strike in Belgium last week. People throughout Europe are organising against austerity and people in Ireland are no different. The debate we need is not whether we are in or out of Europe but the type of Europe we should have to serve the interests of the people, rather than to serve the wealthy elite at the top.

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