Seanad debates

Tuesday, 24 April 2012

Thirtieth Amendment of the Constitution (Treaty on Stability, Coordination and Governance in the Economic and Monetary Union) Bill 2012: Committee and Remaining Stages

 

During the Order of Business, a number of Senators from the Fianna Fáil Party also made the point that we had budget surpluses for years, so we were not borrowing recklessly. Greece was borrowing for day-to-day spending but in Ireland we had budget surpluses. Even if we were to adopt the fiscal compact treaty, it will not ensure we never have a Celtic tiger scenario again. It will limit the ability of member states to invest or borrow for day-to-day spending, forcing governments, where possible, to balance the books. That does not accept the reality, as no small to medium-sized business would be able to operate under those very strict guidelines. One can imagine if a small business could only borrow 3% above what is being taken in within a given year. How could a business borrow to expand? It would not be able to do so and the same applies to an economy.

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