Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
Link to this: Individually | In context

Question 30: To ask the Tánaiste and Minister for Foreign Affairs and Trade with respect to the provision, contained in the draft intergovernmental treaty, to introduce the 0.5% deficit ceiling and a tougher debt reduction target for States with debt ratios above 60% into national binding provisions of a constitutional or equivalent level, his views that this will require a referendum; his further views that it would be possible to honour this section of the draft treaty in any way other than via constitutional change; and if he is saying that there is an equivalent to Irish constitutional law in the Irish legal system. [2574/12]

Eamon Gilmore (Dún Laoghaire, Labour)
Link to this: Individually | In context

In December, it was agreed that, as part of our collective response to the current economic crisis in the euro area, we needed to further strengthen economic policy co-ordination and to construct a new "fiscal compact" to achieve this goal. Negotiations are ongoing on a draft treaty to give legal effect to this agreement. This work is being advanced outside the framework of the EU treaties because it was not possible to secure a basis on which all member states would participate.

As the Deputy will be aware, an initial draft text was circulated before Christmas. Further drafts have been brought forward since. The text is still a work in progress and it is hoped that significant progress towards agreement will have been made before an informal meeting of the European Council scheduled for 30 January. Once agreement is reached, the text will then be prepared for signature and subsequent ratification by each of the participants, according to their respective constitutional requirements. Only when a final text is available will it be possible to reach a view on what will be required by way of ratification in Ireland. The test will be whether the proposed treaty is compatible with the Constitution.

As the Government has confirmed previously, the Attorney General will study the legal implications carefully and will advise on what steps will be necessary to enable Ireland to ratify. Until then, it is simply not possible to be definitive. As the Government has made clear many times, if a referendum is required, one will be held.

On the specific issues to which the Deputy refers, it is necessary to recall the extensive obligations that already exist in EU legislation, including under the strengthened Stability and Growth Pact, SGP, provided for in the six legislative measures adopted towards the end of last year. Inter alia, when a member state exceeds the 60% debt to GDP ratio in the SGP, it will be expected to adjust its debt downwards by an average of one twentieth per year. In addition, the legislation requires a differentiated medium-term objective for each member state which is within a defined range of between -1% of GDP and balance or surplus in cyclically adjusted terms. The fact is that tough rules already exist and these are necessary if we are to secure the stability of the common currency into the future.

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
Link to this: Individually | In context

It is widely agreed that the three crises we are facing across Europe relate to banking, sovereign debt and investment and what has been put before us by European leaders does not provide a solution to one of those crises. They have focused on, for bizarre reasons, the issue of permanent austerity to drive down wages and conditions and so on and to cut and privatise public services as a panacea to what is a fundamentally a dramatic failure in one sector of the economy - banking.

Michael Kitt (Galway East, Fianna Fail)
Link to this: Individually | In context

A question please, Deputy.

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
Link to this: Individually | In context

I will get to it quickly.

Michael Kitt (Galway East, Fianna Fail)
Link to this: Individually | In context

We are running out of time.

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
Link to this: Individually | In context

The target now is 3% now but a 0.5% target is draconian. Seeking to reduce the debt to GDP ratio to 60%, bringing it down 5% per year, is also draconian and has dramatic implications for the Irish people. The Government has been asked in the first draft to enshrine it in the Constitution or equivalent legislation. What is the position of the Government on that? Is the Minister willing to enshrine austerity in the Constitution?

Eamon Gilmore (Dún Laoghaire, Labour)
Link to this: Individually | In context

As Deputy Mac Lochlainn stated, there are three elements to the economic crisis that we are facing, and all three of those elements are being addressed. On the banking dimension, as the Deputy will be aware, the ECB agreed prior to Christmas to make a very substantial amount of money available over a three-year period to the banking system throughout Europe.

On the dimension of jobs and growth, the Council meeting, which has been convened for 30 January, will be directly addressing the issues of jobs and growth in the euro area. It is not confined to issues relating to cuts.

On sovereign debt, the situation, as the Deputy will be aware, varies from one country to another. In the case of this country, we are already part of a programme. We must meet the terms of that programme. The terms, which are being discussed at present, are not any more onerous than the terms of the programme we are already in. Some the conditions to which the Deputy referred, for example, the 60% debt to GDP ratio, were already part of the Stability and Growth Pact, which was a condition of our membership of the euro.

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
Link to this: Individually | In context

In the first published document, it was stated that the balanced budget rule - basically, Draconian austerity - had to be enshrined at constitutional or equivalent level. The latest draft, the third draft, states that the Government should enshrine this through binding and permanent provisions, preferably constitutional. Is our negotiating team trying to avoid a referendum? Is it trying to change the text to avoid the need for one? Is the Government trying to avoid its responsibility of putting this before the people? Is it trying to circumvent putting it before the people? Is the Minister's negotiating team involved in that?

Eamon Gilmore (Dún Laoghaire, Labour)
Link to this: Individually | In context

That is not the primary objective of the Government. The primary objective of the Government is to work with others in Europe to bring stability in the first instance to the euro and to the eurozone and to ensure that the European economy grows and second, in doing that, to do so in a way that secures the best possible deal and arrangement for the taxpayers and the public of this country. We have made it clear that if at some stage either this agreement or another agreement requires a referendum, we have no difficulty in presenting that to the people. Of course, the Deputy will appreciate that in pursuing our work and in pursuing our negotiations, which are ongoing and in which senior officials of Government are involved on a day-to-day basis, the officials will comply with the Constitution. We have an obligation to work in a way that complies with the Constitution.