“A Federation for the Eurozone and a Confederation for the rest of the EU”
(Note: The following replaces & corrects earlier version of 7/May)
TWO TREATIES FOR THE EUROZONE AND AN AMENDMENT TO ONE OF THE EU TREATIES – ALL RELATED TO EACH OTHER!Reply to Dr Gavin Barrett, Senior Lecturer in European Law, UCD, who wrote an article urging a Yes vote in the Fiscal Treaty referendum in the Irish Times on Friday 4 May, by Anthony Coughlan, Director, The National Platform EU Research and Information Centre, 24 Crawford Avenue, Dublin 9; Tel.: 01-8305792
Wednesday 9 May 2012
AMENDMENT TO ARTICLE 136, TREATY ON THE FUNCTIONING OF THE EUROPEAN UNION (TFEU) –
“The Member States whose currency is the euro may establish a stability mechanism to be activated if indispensable to safeguard the stability of the euro area as a whole. The granting of any required financial assistance under the mechanism will be made subject to strict conditionality.”
– Proposed amendment to Article 136 TFEU of the EU Treaties by which the 27 EU Member States authorize the 17 Member States of the Eurozone to establish a Stability Mechanism
The above Art.136 TFEU amendment to the EU Treaties has still to be approved by Ireland in accordance with its constitutional requirements under the “simplified” EU treaty amendment procedure of Article 48.6 TEU.
The European Council “Decision” to insert this amendment into the EU Treaties comes into force on 1 January 2013 if by that time it has been approved by all 27 EU Member States in accordance with their constitutional requirements.
The ESM Institution which the 17 Eurozone States seek to establish and which Ireland would become a Member of is to be set up by the ESM Treaty for the 17 on the basis of this Art.136 TFEU authorization by the 27. The ESM Treaty states that it is “complementary” to the Fiscal Treaty on which we have a referendum vote on 31 May.
The Government has promised the other 16 Eurozone Governments that it will have the ESM Treaty ratified by July, but without the necessary constitutional referendum being held on it and on the Art. 136 TFEU amendment which authorizes it.
Q. BUT WHERE WILL WE GET THE MONEY?
A. We will get the money by holding a referendum on the Article 136 TFEU amendment and the ESM Treaty that it authorizes. This is constitutionally required in Ireland in order to validate these proposals as they stand, but our supine Government wants to avoid such a referendum at all costs. The 16 other Eurozone States will have to persuade us to vote Yes in such a referendum if they are to establish the kind of Stability Mechanism which the ESM Treaty envisages. They can do this by agreeing to forgive the private bank debt the ECB has insisted should be imposed on Irish taxpayers, plus the Anglo-Irish promissory notes etc. An Irish referendum on Article 136 TFEU and the ESM Treaty would also be an opportunity to add the voice of the Irish people to the calls across Europe for the Eurozone authorities to agree a growth strategy instead of the present failed austerity policies.
Q. WHERE WILL WE GET THE MONEY IF WE VOTE NO TO THE FISCAL TREATY?
A. Where will the Government get the money to pay the €11 billion the ESM Treaty will require from us – €1.3 billion up front and €250 million of that this July! – with an open-ended treaty commitment to pay further sums thereafter without limit?
Filed under: Anthony Coughlan, austerity treaty, ESM, Fiscal Compact Treaty, Irish Economy, Myths & Misrepresentations, Referendum | Clibeanna: Article 136 TFEU, Dr Gavin Barrett, Fiscal/Stability Treaty, irish times, promissory notes, veto | 2 Comments »