Campaigners Say Fiscal Treaty Is ‘Doublethink’
Press release from Debt Justice Action’s Not Our Debt campaign.
The campaign group Anglo: Not Our Debt has sharply criticized the EU’s new ‘fiscal treaty’. Campaign spokesperson Marie Moran described the treaty as “akin to someone being advised to keep the doors of their house locked tomorrow while thieves were ransacking it today”. “There is something obscene about insisting a country like Ireland reduce its deficit and debt levels, while at the same time forcing it to repay the debts run up by a private bank like Anglo Irish”, she continued.
Jimmy Kelly of the trade union UNITE described as “mind blowing doublethink” the idea that Ireland could institutionalize, as the treaty insists, low levels of public debt and budget deficits while honouring the Anglo debt - the final bill for which could run to in excess of €80 billion [1]. “Ireland would not have a serious crisis of public debt in the first place if we had not socialized the private gambling debts of those who lent to Anglo, and in doing so bailed out the European financial system”, he said.
Community worker John Bissett called on the Irish government to suspend the €3.1 billion Anglo ‘promissory note’ due for payment on 31st March and for the government to enter into negotiations to have the debt written down. “The EU”, he said, “cannot have it both ways - if they want countries like Ireland to be fiscally ‘responsible’ then they cannot saddle them with odious and unsustainable debts”.
Anglo Repayments
The Anglo repayments will have reached €47 billion by 2031, the equivalent of 30% of Ireland’s current GDP. However, as Ireland will have to borrow more to make the payments, this could rise to €85 billion when interest charges are added in. The campaigners highlight that the €3.1 billion payments due to be made by the state on behalf of Anglo in March 2012 would fund the cost of running Ireland’s entire primary school system for a year or could fund the putting in place of a next generation broadband network for all of Ireland.
Anglo: Not Our Debt campaign is supported by the Debt Justice Action network, which consist of the following:
Action From Ireland (Afri)
Africa Centre
Africa-Europe Faith and Justice Network
Ballyhea Says No To Bondholder Bailout
Canal Communities Campaign for Equality and Fairness
Centre for Global Education
Claiming Our Future
Clondalkin Travellers Development Group
Comhlámh
Debt and Development Coalition Ireland
Fermoy Says No To Bondholder Bailouts
Galway One World Centre
Irish Missionary Union - Justice
Just Forests
Kilbarack Community Development Project
Latin America Solidarity Centre
Little Sisters of the Assumption
Migrant Rights Centre of Ireland
NUI Maynooth Community Education, Equality and Social Activism
UCD School of Social Justice
Unite Trade Union
Sisters of Our Lady of the Apostles
Spectacle of Defiance and Hope
Individual academics, community workers and campaigners
Independent think-tank TASC is providing technical advice to Debt Justice Action.
A simple ‘questions and answers’ document on Anglo debt can be found at http://www.notourdebt.ie
Discussion
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Comment by: Frank Keoghan
Feb 4th 2012 at 15:02
The EU Permanent Austerity Treaty will be the final nail in the coffin of the Irish economy, if it is ratified either by the Dail or by referendum. It will also sound the death knell for the economies of a number of other European economies upon whose markets we partially depended for a revival of economic growth and job creation. It is difficult to understand how, when many member – states failed to match the requirement of an annual budget deficit of no higher than 3% demanded by the Stability and Growth Pact (SGP) that the government can now commit to a totally unattainable structural deficit limit of 0.5%.
The SGP was adopted in 1997 so that fiscal discipline would be maintained and enforced in the EMU. Member states adopting the euro – now an imperative under Lisbon, with the exceptions of Britain and Denmark, who have opt – outs - have to meet the Maastricht convergence criteria, and the SGP ensures that they continue to observe them. It demands an annual structural deficit no higher than 3% of GDP (this includes the sum of all public budgets, including municipalities, regions, etc.) and a national debt lower than 60% of GDP or approaching that value.
The government in its assumed role of austerity cheer leader has embraced this 0.5% structural deficit limit despite the fact that during the boom years when revenue was buoyant, Ireland only satisfied the criteria on one occasion. The same is true of the AAA – rated Germany and Netherlands. Notably, France and Austria never managed to satisfy it! Yet, Enda Kenny told the Dail last week that, “Ireland needs to see this new treaty adopted and enforced,” adding that it was in the national interest to do so
On the other hand, we only failed in one year to reach the 3% limit since its introduction while Germany missed on four occasions and France failed 50% of the time. Of course there were no sanctions but it is interesting to note that even in those buoyant periods, the instincts of the Irish elite veered toward austerity, a trait that also forcibly marked the economic policy of the early Free State governments following the foundation of the state.
So, isn’t it time we intervened and attempted to halt the destruction of not only our weak economy but more importantly, of our society? All EU states with the notable exception of Germany will have to impose deeper austerity measures if they are to meet these targets. We will suffer immeasurably if we follow this lunatic course. It is just too high a price to pay for saving the Euro.
A referendum with its associated debate would facilitate the Irish people in considering alternatives to Euro membership and would allow these to be elaborated in the face of opposition from the elites. Above all such a referendum would allow the people an opportunity to reject this Austerity Treaty which clearly spells the end of the Euro as we know it, finally ends any illusions about Social Europe and shreds any remaining vestiges of economic sovereignty, so vital if we are to satisfy the social demands of the population.
Comment by: Rita Cahill
Feb 5th 2012 at 22:02
We Need to Call on a General Strike, by making our Demands Clearly, and Shut down everything for 24 hours, and let this Government know that people have had enough of their Bull Story and no way can People Suffer, because these Perpetrators are getting greedy, and punishing the people for the previous Government and Them too who got us all into this deep shit, they were the Mad borrowing greedy politicians, and what about Enda and a few of his gailers parties Fraud in the Golf Money they received and Put into a Bank accounts as charity Money, more what they’re going to Take like FF did, Robber and Corrupt politicians Leading and Bleeding The Irish people Dry