The EU fanatics have come to such a policy dead end that they really no longer care what happens to the country
The following is from Frank Keoghan of the People’s Movement on the Austerity Treaty. It was also published in the latest issue of People’s News.
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.
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