Showing posts with label European Union. Show all posts
Showing posts with label European Union. Show all posts

Saturday, June 18, 2011

Au revoir à l'euro?



It is not a goodtime to be one of the PIGS – Portugal, Ireland, Greece and Spain. Greece, Ireland and Portugal, the euro region countries that needed 256 billion Euros ($366 billion) in emergency aid to avoid default, may all see their debt loads exceed the size of their economies this year. The only one of the PIGS whose economy has not been bailed out is Spain which is arguably too big to be bailed out in any event.



However the possibility of a second Greek Bail-Out and the increasing likelihood of defaults on Sovereign Debt is threatening not just the continuation of the Eurozone but the entire European Banking System – it is estimated that UK Banks have over €88 Billion exposure in Ireland and French and German Banks over €100 Billion exposure in Greece. Moody's has placed three large French banks on negative review based on their exposure to Greek debt.



In Ireland the political opposition is building up to the IMF Bailout fuelled by resentment that the Developers, Bankers and idiot Politicians who caused the bubble in asset values are getting off scot free. Finance Dublin kicked off The Irish Government Debt Clock which was set at midnight on June 30th 2009, when it was €65.278 billion. It updates the latest figures for the National Debt of Ireland. The clock is re-set periodically, to reflect changes in debt and deficit estimates from the Dept of Finance, the National Treasury Management Agency (NTMA), and independent economists. The clock is set now at €107 Bn, an amount which would be unserviceable even if the boom had continued. For further background on what the debt figures mean click here.

http://www.financedublin.com/debtclock.php


Cheerful Hibernians in between Riverdancing

Greece’s debt, already the biggest in the euro’s history at 143 percent of gross domestic product last year, will jump to almost 158 percent this year and 166 percent in 2012, the European Commission said this week in Brussels. Portuguese debt will surpass total economic output for the first time this year, growing to 101.7 percent of GDP, while Irish debt will reach 112 percent, the forecasts show.



As European Union officials consider boosting aid for Greece a year after its 110 billion-euro bailout, today’s report shows little sign of debt levels becoming more manageable. Soaring borrowing costs have left the three nations shut out of financial markets with investors increasing bets that Greece will become the first euro member to default.



The scale of Greece's problem is simply stated: her national debt will approach 160 per cent of GDP on current trends. Here in the UK we are supposed to be in crisis because that ratio is heading for about 75 per cent.


Les porcs

The Celtic Sage takes no satisfaction in predicting as far back as 2007 that the “One size fits all” Monetary Policy would be unsustainable in the EU’s peripheral economies when I wrote;

“There is widespread and growing disquiet about the consequences of the Euro, especially as the preparations for it already seem directly responsible for rising unemployment in Europe. Some argue cogently that the regional imbalances from monetary union will be a source of conflict not harmony between states. Popular resentment about high unemployment in depressed regions and about the scale of financial transfers to them from richer states could lead to a possibly violent break-up of monetary union.”

http://daithaic.blogspot.com/2007/09/euro-opportunity-or-threat-for-britain.html

Earlier this year I pointed out the sheer impossibility of Ireland servicing its (then smaller) debt and how the election of a new brand of Gombeen Government would not make an iota of difference;




Beware of electorates carrying placards

“So the € 80 Bn Bailout equates to roundly € 55,000 for every productive worker. Add to this annual interest servicing costs of € 4,960 per annum and you get the scale of the problem, Ireland’s public and private debt is simply unsustainable. Most reconstructions, Bankruptcy and liquidations, involve substantial debt reduction, a write off of debt before you begin a fresh start. Ireland is in unrealistic denial about being able to service its Public and private debt making the hard stop of debt default inevitable sooner rather than later.”

http://daithaic.blogspot.com/2011/02/terrible-default-is-born.html

You know, sometimes it would be good to be wrong?

Au revoir à l'euro?



It is not a goodtime to be one of the PIGS – Portugal, Ireland, Greece and Spain. Greece, Ireland and Portugal, the euro region countries that needed 256 billion Euros ($366 billion) in emergency aid to avoid default, may all see their debt loads exceed the size of their economies this year. The only one of the PIGS whose economy has not been bailed out is Spain which is arguably too big to be bailed out in any event.



However the possibility of a second Greek Bail-Out and the increasing likelihood of defaults on Sovereign Debt is threatening not just the continuation of the Eurozone but the entire European Banking System – it is estimated that UK Banks have over €88 Billion exposure in Ireland and French and German Banks over €100 Billion exposure in Greece. Moody's has placed three large French banks on negative review based on their exposure to Greek debt.



In Ireland the political opposition is building up to the IMF Bailout fuelled by resentment that the Developers, Bankers and idiot Politicians who caused the bubble in asset values are getting off scot free. Finance Dublin kicked off The Irish Government Debt Clock which was set at midnight on June 30th 2009, when it was €65.278 billion. It updates the latest figures for the National Debt of Ireland. The clock is re-set periodically, to reflect changes in debt and deficit estimates from the Dept of Finance, the National Treasury Management Agency (NTMA), and independent economists. The clock is set now at €107 Bn, an amount which would be unserviceable even if the boom had continued. For further background on what the debt figures mean click here.

http://www.financedublin.com/debtclock.php


Cheerful Hibernians in between Riverdancing

Greece’s debt, already the biggest in the euro’s history at 143 percent of gross domestic product last year, will jump to almost 158 percent this year and 166 percent in 2012, the European Commission said this week in Brussels. Portuguese debt will surpass total economic output for the first time this year, growing to 101.7 percent of GDP, while Irish debt will reach 112 percent, the forecasts show.



As European Union officials consider boosting aid for Greece a year after its 110 billion-euro bailout, today’s report shows little sign of debt levels becoming more manageable. Soaring borrowing costs have left the three nations shut out of financial markets with investors increasing bets that Greece will become the first euro member to default.



The scale of Greece's problem is simply stated: her national debt will approach 160 per cent of GDP on current trends. Here in the UK we are supposed to be in crisis because that ratio is heading for about 75 per cent.


Les porcs

The Celtic Sage takes no satisfaction in predicting as far back as 2007 that the “One size fits all” Monetary Policy would be unsustainable in the EU’s peripheral economies when I wrote;

“There is widespread and growing disquiet about the consequences of the Euro, especially as the preparations for it already seem directly responsible for rising unemployment in Europe. Some argue cogently that the regional imbalances from monetary union will be a source of conflict not harmony between states. Popular resentment about high unemployment in depressed regions and about the scale of financial transfers to them from richer states could lead to a possibly violent break-up of monetary union.”

http://daithaic.blogspot.com/2007/09/euro-opportunity-or-threat-for-britain.html

Earlier this year I pointed out the sheer impossibility of Ireland servicing its (then smaller) debt and how the election of a new brand of Gombeen Government would not make an iota of difference;




Beware of electorates carrying placards

“So the € 80 Bn Bailout equates to roundly € 55,000 for every productive worker. Add to this annual interest servicing costs of € 4,960 per annum and you get the scale of the problem, Ireland’s public and private debt is simply unsustainable. Most reconstructions, Bankruptcy and liquidations, involve substantial debt reduction, a write off of debt before you begin a fresh start. Ireland is in unrealistic denial about being able to service its Public and private debt making the hard stop of debt default inevitable sooner rather than later.”

http://daithaic.blogspot.com/2011/02/terrible-default-is-born.html

You know, sometimes it would be good to be wrong?

Monday, February 28, 2011

A terrible default is born



Congratulations to Ireland on electing a new puppet Government. The election will not reduce the interest rate on its €80bn bailout by a quarter of a percentage point; it will not diminish the burden of the deficit by so much as an old Irish Punt (the pre-euro currency which rhymed with Bank Manager). It will hang around the necks of the Irish for decades, and rest upon the shoulders of their children and their children’s children. If Gaddafi Adams is the answer then what is the question? The HUGE mistake was to guarantee not just deposits but ALL the liabilities of Irish Banks. The Hedge Fund Bondholders have been in LMAO mode ever since. Alas I had anticipated years ago that a monetary policy designed for Germany and France would make the PIGS (Portugal, Ireland, Greece, Spain) squeal and so it has come to pass;

http://daithaic.blogspot.com/2007/09/euro-opportunity-or-threat-for-britain.html



Welcome to Dublin!


Fine Gael have been swept to power on the back of a promise to renegotiate the terms of Ireland’s €80bn bailout by the European Union and International Monetary Fund. But Enda Kenny (a leader so impressive his own party tried to give him the heave 8 months ago) like all the other “believe my promises" Irish Politicos has no real power, Ireland’s sovereignty has been removed. The greatest joy is that the Greens have been totally stuffed, losing all their six seats. It's funny how it works that way. They do alright until they get a bit of power – then people realise how absolutely crap they are, and they never get another look in.



As for the Labour Party well I’ve always voted Labour in any country I’ve lived in and I know and like Eamonn Gilmore since we were both involved in the Union of Students in Ireland in the 70’s. However their economic policy has not moved much beyond the “increase taxes to eliminate poverty era.”


We'll always have Riverdance!


Lack of democratic accountability means the same austerity measures will still be imposed, exactly as they are across the euro zone. The impotence of Ireland to influence its own future will lead to bitterness and alienation. This in turn will lead to continuing dishonesty and delusion among a population for whom the “stroke” is a National Religion – this is the only country where a €78 million Euro lottery winner was found to be on benefits and working, claiming “Single Mother’s Allowance” when with a partner and having a holiday home in Turkey and was feted as a “character.” This is a country with the same population as Greater Manchester which still supports 340 Quangos full of self important, self serving popinjays getting in the way of reality. This is a country which when it became wealthy spent its money on buying itself in a huge property bubble.


You can't go wrong with land - sure they are not making any more of it!

But let us consider the nature of the Bailout and the preceding speculative Bubble and the issue of Ireland’s default becomes a “when”, not an “if.” Before the property bubble Ireland had the highest level of home ownership in the EU, at 62% way ahead of Germany, France and the Netherlands. Indeed the nearest is its near neighbour the U.K. where the “love of property” has really really been a “love of inflation.” So where does this leave property values in the short term as we enter a low inflation or possibly deflationary scenario? In the UK when residential property crashed in 1990 the average house price was 11 times average earnings. When reality hit Ireland in 2007 the average house price was an astounding 23 times average earnings. There are estimated to be 230,000 unsold new homes of which 110,000 are “holiday” homes. Add to the zombie estates, the zombie hotels built for tax breaks and without customers and the zombie developments then there are so many walking dead in the Irish property world that nobody can reliably predict future asset values or ascertain the reality of security behind current borrowings.



The Irish Independent reports today that there are 44,508 mortgages more than 3 months in arrears totalling €8.6 Bn, making each non-performing mortgage worth around € 193,000. Take the € 80 Bn Bailout Ireland has received. Ireland has a labour force of 2.2 million of which around 430,000 are currently claiming unemployment benefit of some sort. Abstract also the estimated 300,000 Public Sector workers this leaves a generous 1,470,000 workers (including those working in zombie hotels) in the wealth producing sectors of the economy. So the € 80 Bn Bailout equates to roundly € 55,000 for every productive worker. Add to this annual interest servicing costs of € 4,960 per annum and you get the scale of the problem, Ireland’s public and private debt is simply unsustainable. Most reconstructions, Bankruptcy and liquidations, involve substantial debt reduction, a write off of debt before you begin a fresh start. Ireland is in unrealistic denial about being able to service its Public and private debt making the hard stop of debt default inevitable sooner rather than later.


Fecked!

Of course the election is not all bad news - but at least we don't have to look at Cowen any more ... until he turns up again with a nice little earner, courtesy of the "colleagues". The inevitable default in the next two years will alienate a whole generation. The puppets may have changed but the same puppet master is still pulling the strings. Congratulations to Jean Claude Trichet of the European Central Bank on his election win. IMF/ECB still rules! Simples!



For an insight into the high quality leadership which has brought Ireland to such a happy place see;

Bertie Ahern and poverty in Ireland;


http://daithaic.blogspot.com/2007/12/bertie-ahern-and-poverty-in-ireland.html

The Naked Taoiseach

http://daithaic.blogspot.com/2009/03/naked-taoiseach.html

A terrible default is born



Congratulations to Ireland on electing a new puppet Government. The election will not reduce the interest rate on its €80bn bailout by a quarter of a percentage point; it will not diminish the burden of the deficit by so much as an old Irish Punt (the pre-euro currency which rhymed with Bank Manager). It will hang around the necks of the Irish for decades, and rest upon the shoulders of their children and their children’s children. If Gaddafi Adams is the answer then what is the question? The HUGE mistake was to guarantee not just deposits but ALL the liabilities of Irish Banks. The Hedge Fund Bondholders have been in LMAO mode ever since. Alas I had anticipated years ago that a monetary policy designed for Germany and France would make the PIGS (Portugal, Ireland, Greece, Spain) squeal and so it has come to pass;

http://daithaic.blogspot.com/2007/09/euro-opportunity-or-threat-for-britain.html



Welcome to Dublin!


Fine Gael have been swept to power on the back of a promise to renegotiate the terms of Ireland’s €80bn bailout by the European Union and International Monetary Fund. But Enda Kenny (a leader so impressive his own party tried to give him the heave 8 months ago) like all the other “believe my promises" Irish Politicos has no real power, Ireland’s sovereignty has been removed. The greatest joy is that the Greens have been totally stuffed, losing all their six seats. It's funny how it works that way. They do alright until they get a bit of power – then people realise how absolutely crap they are, and they never get another look in.



As for the Labour Party well I’ve always voted Labour in any country I’ve lived in and I know and like Eamonn Gilmore since we were both involved in the Union of Students in Ireland in the 70’s. However their economic policy has not moved much beyond the “increase taxes to eliminate poverty era.”


We'll always have Riverdance!


Lack of democratic accountability means the same austerity measures will still be imposed, exactly as they are across the euro zone. The impotence of Ireland to influence its own future will lead to bitterness and alienation. This in turn will lead to continuing dishonesty and delusion among a population for whom the “stroke” is a National Religion – this is the only country where a €78 million Euro lottery winner was found to be on benefits and working, claiming “Single Mother’s Allowance” when with a partner and having a holiday home in Turkey and was feted as a “character.” This is a country with the same population as Greater Manchester which still supports 340 Quangos full of self important, self serving popinjays getting in the way of reality. This is a country which when it became wealthy spent its money on buying itself in a huge property bubble.


You can't go wrong with land - sure they are not making any more of it!

But let us consider the nature of the Bailout and the preceding speculative Bubble and the issue of Ireland’s default becomes a “when”, not an “if.” Before the property bubble Ireland had the highest level of home ownership in the EU, at 62% way ahead of Germany, France and the Netherlands. Indeed the nearest is its near neighbour the U.K. where the “love of property” has really really been a “love of inflation.” So where does this leave property values in the short term as we enter a low inflation or possibly deflationary scenario? In the UK when residential property crashed in 1990 the average house price was 11 times average earnings. When reality hit Ireland in 2007 the average house price was an astounding 23 times average earnings. There are estimated to be 230,000 unsold new homes of which 110,000 are “holiday” homes. Add to the zombie estates, the zombie hotels built for tax breaks and without customers and the zombie developments then there are so many walking dead in the Irish property world that nobody can reliably predict future asset values or ascertain the reality of security behind current borrowings.



The Irish Independent reports today that there are 44,508 mortgages more than 3 months in arrears totalling €8.6 Bn, making each non-performing mortgage worth around € 193,000. Take the € 80 Bn Bailout Ireland has received. Ireland has a labour force of 2.2 million of which around 430,000 are currently claiming unemployment benefit of some sort. Abstract also the estimated 300,000 Public Sector workers this leaves a generous 1,470,000 workers (including those working in zombie hotels) in the wealth producing sectors of the economy. So the € 80 Bn Bailout equates to roundly € 55,000 for every productive worker. Add to this annual interest servicing costs of € 4,960 per annum and you get the scale of the problem, Ireland’s public and private debt is simply unsustainable. Most reconstructions, Bankruptcy and liquidations, involve substantial debt reduction, a write off of debt before you begin a fresh start. Ireland is in unrealistic denial about being able to service its Public and private debt making the hard stop of debt default inevitable sooner rather than later.


Fecked!

Of course the election is not all bad news - but at least we don't have to look at Cowen any more ... until he turns up again with a nice little earner, courtesy of the "colleagues". The inevitable default in the next two years will alienate a whole generation. The puppets may have changed but the same puppet master is still pulling the strings. Congratulations to Jean Claude Trichet of the European Central Bank on his election win. IMF/ECB still rules! Simples!



For an insight into the high quality leadership which has brought Ireland to such a happy place see;

Bertie Ahern and poverty in Ireland;


http://daithaic.blogspot.com/2007/12/bertie-ahern-and-poverty-in-ireland.html

The Naked Taoiseach

http://daithaic.blogspot.com/2009/03/naked-taoiseach.html

Friday, June 13, 2008

Ireland’s Lisbon Treaty Referendum.



And so it came to pass that the Celtic Sage found himself in the Isle of Destiny on the 12th June 2008, the date when alone of all 27 European Union countries, Ireland was voting on whether to ratify the Lisbon Treaty. The treaty, which is designed to help the EU cope with its expansion into Eastern Europe, provides for a streamlining of the European Commission, the removal of the national veto in more policy areas, a new president of the European Council and a strengthened foreign affairs post. The lampposts of Dublin were cluttered with mugshot posters of local politicians urging voters to vote “Yes” except for Sinn Fein, the only party to oppose it. The opposition is led by Libertas (from the Roman God of goodness and freedom) led by a millionaire entrepreneur named Declan Ganley who has made his fortune from aluminium in Russia, lumber in Latvia and supplying rescue equipment to the oil industry amongst other things, so he can hardly be accused of being insular. Indeed in a lesson for British Euro-sceptics Libertas has not presented itself as anti- European but rather in favour of a democratic and accountable Europe which does not meddle in areas best left to National governments.

THE eyes of Europe were firmly focused on Ireland as around 1.5 million voters here decided the future of 500 million people across the European Union. After a late surge in voting last night, the turnout was reported to be possibly hitting the 45pc mark. Irish voters rejected the treaty and the future of the European Union was plunged into chaos after the Irish voted "No".

The Referendum Bus stops here!

The final referendum result showed 53.4% voted No, while 46.6% voted Yes. Reacting to the referendum result, European Commission President Jose Manuel Barroso insisted the treaty was "still alive". But the result, which came despite a vigorous Yes campaign by the Irish government, left EU member states with a major headache. Eighteen of the EU's members have already ratified he major reform package the treaty introduces. But Ireland's constitution forced it to put the package to a public vote.

However, the third failed referendum in three years on the EU's reform plans is bound to undermine the bloc's public legitimacy and dent its confidence when it faces other big players on the world stage. Aside from impacting on the future direction of the European Union, the referendum is also the first major test for Taoiseach Brian Cowen. The loss of the Referendum vote will be a disaster for Mr Cowen -- both domestically and internationally. The difference between the numbers voting in Dublin and the rest of the country was expected to be crucial, the presumption being that more middle class urban voters will vote “Yes.”

Declan Ganley of the anti-treaty lobby group Libertas said that if the No vote had indeed triumphed that it was "a great day for Ireland". "The people of Ireland have shown enormous courage and wisdom in analysing the facts presented to them and making the decision they have," Mr Ganley said. The No campaign was a broad coalition ranging from Libertas to Sinn Fein, the only party in parliament to oppose the treaty.


There is considerable interest in Europe that uniquely this impenetrable and opaque 400 page treaty is only being put to a popular vote in Ireland. As the late Labour Leader John Smith observed the problem with referenda is people frequently answer questions which are not being asked. This is particularly the case with the Lisbon Treaty which is being opposed by a broad but disparate spectrum from left to right and on issues equally as disparate as Abortion Rights, having an Irish EU Commissioner, protecting farming subsidies and maintaining individual liberties. Libertas gives 8 reasons for opposing the treaty;

1. Creates an unelected President and a Foreign Minister of Europe

The new President and Foreign Minister for Europe will be appointed by the European Council by qualified majority vote. Although many of the terms and conditions of these roles have yet to be decided, they will be committed through the Lisbon Treaty to “drive forward” the agenda of the Council and discussions have already taken place to provide a presidential palace and executive jet for the President.

Vote yes says Bertie Ahern's older brother

2. Halves Ireland’s voting weight while doubling Germany’s

The Lisbon Treaty would implement a new system of voting by the European Council which is primarily based on population size. This means that Ireland’s voting weight would be reduced from 2% at present to 0.8% if the Treaty was implemented, while Germany’s would increase from 8% to 17%.

3. Abolishes Ireland’s Commissioner for five years at a time

The Lisbon Treaty proposes to reduce the number of Commissioners to two thirds of the number of member states. This would mean that, on a rotating basis, Ireland would have no seat for five years out of every 15 in the body that has the monopoly on initiating legislation. This would clearly affect a small country like Ireland to a far greater extent than, for example, Germany which is having its voting weight doubled under the Treaty.

4. Opens the door to interference in tax and other key economic interests





Article 113 of the Lisbon Treaty specifically inserts a new obligation on the European Council to act to avoid “distortion of competition” in respect of indirect taxes. The proposals for a common consolidated tax base and the commitment of the French government to pursue it combined with a weakening of Ireland’s voice in Europe through the loss of a permanent Commissioner and halving of its voting weight represent a clear and present danger to our tax competitiveness.

5. Hands over power in 60 areas of decision making to Brussels

The Lisbon Treaty provides for more than 60 areas of decision making from unanimity at present to qualified majority voting. Some of those areas include decision-making on immigration, sport, culture, transport and the appointment of the European President and Foreign Minister.


6. Gives exclusive competence to Brussels over International Trade and Foreign Direct Investment

For the first time, under the Lisbon Treaty foreign direct investment would become an exclusive competence of the EU as part of its common commercial policy. This means that the tools which have been used so successfully by the IDA to attract tens of thousands of jobs to Ireland will become the sole preserve of the European Union and the Irish Government will have to seek permissions

7. Enshrines EU law as superior to Irish law

On June 12th we will be voting on the 28th amendment to the Irish Constitution which clearly restates the following:

11° No provision of this Constitution invalidates laws enacted, acts done or measures adopted by the State that are necessitated by the obligations of membership of the European Union referred to in subsection 10° of this section, or prevents laws enacted, acts done or measures adopted by the said European Union or by institutions thereof, or by bodies competent under the treaties referred to in this section, from having the force of law in the State.”

8. The Treaty can be changed without another referendum

Article 48 of the Treaty enables changes to be made to it after ratification without the constitutional requirement for another referendum in Ireland. This is confirmed by the independent Referendum Commission on its website which states: there “may” be a requirement for a referendum to implement such changes.

It is quiet a charge sheet but it is also indicative of the standard of debate in Ireland. Libertas has very deliberately avoided the “Yah, Boo, Sucks,” style of debate which tends to typify Euro Sceptic contributions in the UK. Indeed its impressive funding and positive tone has led many to suspect it is getting considerable help from across the water, the water in this case being the Atlantic Ocean rather than the Irish Sea.






Whatever your view of the debate and the outcome at least Ireland is having that debate and democratic decision making, a fact which has not gone unnoticed in the UK where there is a consensus among the major parties that the decision is to be made in Parliament. In Ireland by contrast many provisions in the 1937 Constitution are modelled on the US Constitution and certain matters affecting sovereignty, neutrality and legal jurisdiction must be put to referendum. Indeed there is a permanent and Independent Referendum Commission which overseas them which tends to lend credence to Brendan Behan’s assertion that “The Irish are a nation of Master Debaters”. The European Political Establishment have proceeded on the basis that the Lisbon Treaty is a “done deal” which will;

Amend, but not replace, the two main treaties which govern the EU, namely:
• the Treaty Establishing the European Community (the EC Treaty);
• the Treaty on European Union (the Maastricht Treaty).

Ireland, by common consensus, has done well out of the European Union but what is often not recognised abroad is that the “Celtic Tiger” has also succeeded because of Irish entrepreneurial success, consensus on social matters and a deliberate decision to create a low tax and simplified environment for enterprise. This is now under threat creating a wide sense of insecurity as the struggling economy is dealt a double blow as new figures showed faster price rises and a plunge in spending in shops, bars and restaurants. The combination of the two sets of data from the Irish Statistics Office raises the spectre of "stagflation", where the economy stagnates but inflation grows. The success of Ireland has conversely given Irish people less of a sense of dependence and of obligation to Europe. The “No” campaign played on this and asked voters to vote against the sense of entitlement of the political elite as exemplified by the former French President who said;

"The difference between the original Constitution and the present Lisbon Treaty is one of approach, rather than content ... the proposals in the original constitutional treaty are practically unchanged. They have simply been dispersed through old treaties in the form of amendments. Why this subtle change? Above all, to head off any threat of referenda by avoiding any form of constitutional vocabulary ... But lift the lid and look in the toolbox: all the same innovative and effective tools are there, just as they were carefully crafted by the European Convention."

- V.Giscard D'Estaing, former French President and Chairman of the Convention which drew up the EU Constitution, The Independent, London, 30 October 2006


Vote No said the Shinners - always concerned about the People!

The Irish Independent declared: "This could be the most momentous decision of our lives. A "no" vote would present the EU with a crisis. Those who suggest we should send the government back to negotiate a 'better' deal are either very naive or are consciously misleading the public. "In terms of national pride and international status, Europe helped define our place among the nations of the world and won us respect."

EU capitals are confronted with a depressing prospect. The peoples of the European Union – even those who have manifestly benefited from the enterprise such as the French and the Dutch and now the Irish – feel threatened, rather than inspired or protected, by their membership of the enlarged EU.

The appeal to people to vote to assert a democratic right has proved potent. Equally potent is the harnessing of the widespread distaste at EU inefficiency, corruption in agricultural subsidies and the Weimar Republic atmospherics of the “gravy train” European Parliament. Lenin once said that every revolution consists of kicking down a rotten door, but the prerequisite is that the door must first be rotten. It is clear that the European Union has much work to do to improve its joinery – it needs to be much more accountable and transparent, it needs to be genuinely democratic and it needs to stop assuming the people cannot understand and explain properly and in a non-patronising what it intends to do.

Maybe this vote from a highly communitare small Island will be a wake up call to Europe that it must be a popular and not an elitist project. And maybe on the 12th June 2008 the well informed and motivated electorate have issued a wake up call which will reform and strengthen the European Project? Maybe the 12th June was the day Ireland acting for all Europeans who did not have a vote said Europe must be governed by the People for the People?

Ireland’s Lisbon Treaty Referendum.



And so it came to pass that the Celtic Sage found himself in the Isle of Destiny on the 12th June 2008, the date when alone of all 27 European Union countries, Ireland was voting on whether to ratify the Lisbon Treaty. The treaty, which is designed to help the EU cope with its expansion into Eastern Europe, provides for a streamlining of the European Commission, the removal of the national veto in more policy areas, a new president of the European Council and a strengthened foreign affairs post. The lampposts of Dublin were cluttered with mugshot posters of local politicians urging voters to vote “Yes” except for Sinn Fein, the only party to oppose it. The opposition is led by Libertas (from the Roman God of goodness and freedom) led by a millionaire entrepreneur named Declan Ganley who has made his fortune from aluminium in Russia, lumber in Latvia and supplying rescue equipment to the oil industry amongst other things, so he can hardly be accused of being insular. Indeed in a lesson for British Euro-sceptics Libertas has not presented itself as anti- European but rather in favour of a democratic and accountable Europe which does not meddle in areas best left to National governments.

THE eyes of Europe were firmly focused on Ireland as around 1.5 million voters here decided the future of 500 million people across the European Union. After a late surge in voting last night, the turnout was reported to be possibly hitting the 45pc mark. Irish voters rejected the treaty and the future of the European Union was plunged into chaos after the Irish voted "No".

The Referendum Bus stops here!

The final referendum result showed 53.4% voted No, while 46.6% voted Yes. Reacting to the referendum result, European Commission President Jose Manuel Barroso insisted the treaty was "still alive". But the result, which came despite a vigorous Yes campaign by the Irish government, left EU member states with a major headache. Eighteen of the EU's members have already ratified he major reform package the treaty introduces. But Ireland's constitution forced it to put the package to a public vote.

However, the third failed referendum in three years on the EU's reform plans is bound to undermine the bloc's public legitimacy and dent its confidence when it faces other big players on the world stage. Aside from impacting on the future direction of the European Union, the referendum is also the first major test for Taoiseach Brian Cowen. The loss of the Referendum vote will be a disaster for Mr Cowen -- both domestically and internationally. The difference between the numbers voting in Dublin and the rest of the country was expected to be crucial, the presumption being that more middle class urban voters will vote “Yes.”

Declan Ganley of the anti-treaty lobby group Libertas said that if the No vote had indeed triumphed that it was "a great day for Ireland". "The people of Ireland have shown enormous courage and wisdom in analysing the facts presented to them and making the decision they have," Mr Ganley said. The No campaign was a broad coalition ranging from Libertas to Sinn Fein, the only party in parliament to oppose the treaty.


There is considerable interest in Europe that uniquely this impenetrable and opaque 400 page treaty is only being put to a popular vote in Ireland. As the late Labour Leader John Smith observed the problem with referenda is people frequently answer questions which are not being asked. This is particularly the case with the Lisbon Treaty which is being opposed by a broad but disparate spectrum from left to right and on issues equally as disparate as Abortion Rights, having an Irish EU Commissioner, protecting farming subsidies and maintaining individual liberties. Libertas gives 8 reasons for opposing the treaty;

1. Creates an unelected President and a Foreign Minister of Europe

The new President and Foreign Minister for Europe will be appointed by the European Council by qualified majority vote. Although many of the terms and conditions of these roles have yet to be decided, they will be committed through the Lisbon Treaty to “drive forward” the agenda of the Council and discussions have already taken place to provide a presidential palace and executive jet for the President.

Vote yes says Bertie Ahern's older brother

2. Halves Ireland’s voting weight while doubling Germany’s

The Lisbon Treaty would implement a new system of voting by the European Council which is primarily based on population size. This means that Ireland’s voting weight would be reduced from 2% at present to 0.8% if the Treaty was implemented, while Germany’s would increase from 8% to 17%.

3. Abolishes Ireland’s Commissioner for five years at a time

The Lisbon Treaty proposes to reduce the number of Commissioners to two thirds of the number of member states. This would mean that, on a rotating basis, Ireland would have no seat for five years out of every 15 in the body that has the monopoly on initiating legislation. This would clearly affect a small country like Ireland to a far greater extent than, for example, Germany which is having its voting weight doubled under the Treaty.

4. Opens the door to interference in tax and other key economic interests





Article 113 of the Lisbon Treaty specifically inserts a new obligation on the European Council to act to avoid “distortion of competition” in respect of indirect taxes. The proposals for a common consolidated tax base and the commitment of the French government to pursue it combined with a weakening of Ireland’s voice in Europe through the loss of a permanent Commissioner and halving of its voting weight represent a clear and present danger to our tax competitiveness.

5. Hands over power in 60 areas of decision making to Brussels

The Lisbon Treaty provides for more than 60 areas of decision making from unanimity at present to qualified majority voting. Some of those areas include decision-making on immigration, sport, culture, transport and the appointment of the European President and Foreign Minister.


6. Gives exclusive competence to Brussels over International Trade and Foreign Direct Investment

For the first time, under the Lisbon Treaty foreign direct investment would become an exclusive competence of the EU as part of its common commercial policy. This means that the tools which have been used so successfully by the IDA to attract tens of thousands of jobs to Ireland will become the sole preserve of the European Union and the Irish Government will have to seek permissions

7. Enshrines EU law as superior to Irish law

On June 12th we will be voting on the 28th amendment to the Irish Constitution which clearly restates the following:

11° No provision of this Constitution invalidates laws enacted, acts done or measures adopted by the State that are necessitated by the obligations of membership of the European Union referred to in subsection 10° of this section, or prevents laws enacted, acts done or measures adopted by the said European Union or by institutions thereof, or by bodies competent under the treaties referred to in this section, from having the force of law in the State.”

8. The Treaty can be changed without another referendum

Article 48 of the Treaty enables changes to be made to it after ratification without the constitutional requirement for another referendum in Ireland. This is confirmed by the independent Referendum Commission on its website which states: there “may” be a requirement for a referendum to implement such changes.

It is quiet a charge sheet but it is also indicative of the standard of debate in Ireland. Libertas has very deliberately avoided the “Yah, Boo, Sucks,” style of debate which tends to typify Euro Sceptic contributions in the UK. Indeed its impressive funding and positive tone has led many to suspect it is getting considerable help from across the water, the water in this case being the Atlantic Ocean rather than the Irish Sea.






Whatever your view of the debate and the outcome at least Ireland is having that debate and democratic decision making, a fact which has not gone unnoticed in the UK where there is a consensus among the major parties that the decision is to be made in Parliament. In Ireland by contrast many provisions in the 1937 Constitution are modelled on the US Constitution and certain matters affecting sovereignty, neutrality and legal jurisdiction must be put to referendum. Indeed there is a permanent and Independent Referendum Commission which overseas them which tends to lend credence to Brendan Behan’s assertion that “The Irish are a nation of Master Debaters”. The European Political Establishment have proceeded on the basis that the Lisbon Treaty is a “done deal” which will;

Amend, but not replace, the two main treaties which govern the EU, namely:
• the Treaty Establishing the European Community (the EC Treaty);
• the Treaty on European Union (the Maastricht Treaty).

Ireland, by common consensus, has done well out of the European Union but what is often not recognised abroad is that the “Celtic Tiger” has also succeeded because of Irish entrepreneurial success, consensus on social matters and a deliberate decision to create a low tax and simplified environment for enterprise. This is now under threat creating a wide sense of insecurity as the struggling economy is dealt a double blow as new figures showed faster price rises and a plunge in spending in shops, bars and restaurants. The combination of the two sets of data from the Irish Statistics Office raises the spectre of "stagflation", where the economy stagnates but inflation grows. The success of Ireland has conversely given Irish people less of a sense of dependence and of obligation to Europe. The “No” campaign played on this and asked voters to vote against the sense of entitlement of the political elite as exemplified by the former French President who said;

"The difference between the original Constitution and the present Lisbon Treaty is one of approach, rather than content ... the proposals in the original constitutional treaty are practically unchanged. They have simply been dispersed through old treaties in the form of amendments. Why this subtle change? Above all, to head off any threat of referenda by avoiding any form of constitutional vocabulary ... But lift the lid and look in the toolbox: all the same innovative and effective tools are there, just as they were carefully crafted by the European Convention."

- V.Giscard D'Estaing, former French President and Chairman of the Convention which drew up the EU Constitution, The Independent, London, 30 October 2006


Vote No said the Shinners - always concerned about the People!

The Irish Independent declared: "This could be the most momentous decision of our lives. A "no" vote would present the EU with a crisis. Those who suggest we should send the government back to negotiate a 'better' deal are either very naive or are consciously misleading the public. "In terms of national pride and international status, Europe helped define our place among the nations of the world and won us respect."

EU capitals are confronted with a depressing prospect. The peoples of the European Union – even those who have manifestly benefited from the enterprise such as the French and the Dutch and now the Irish – feel threatened, rather than inspired or protected, by their membership of the enlarged EU.

The appeal to people to vote to assert a democratic right has proved potent. Equally potent is the harnessing of the widespread distaste at EU inefficiency, corruption in agricultural subsidies and the Weimar Republic atmospherics of the “gravy train” European Parliament. Lenin once said that every revolution consists of kicking down a rotten door, but the prerequisite is that the door must first be rotten. It is clear that the European Union has much work to do to improve its joinery – it needs to be much more accountable and transparent, it needs to be genuinely democratic and it needs to stop assuming the people cannot understand and explain properly and in a non-patronising what it intends to do.

Maybe this vote from a highly communitare small Island will be a wake up call to Europe that it must be a popular and not an elitist project. And maybe on the 12th June 2008 the well informed and motivated electorate have issued a wake up call which will reform and strengthen the European Project? Maybe the 12th June was the day Ireland acting for all Europeans who did not have a vote said Europe must be governed by the People for the People?