Machholz's Blog

KIERAN ALLEN

OPINION: The Coalition’s argument for a Yes vote demands more scrutiny before Thursday

THE GOVERNMENT only has one argument in favour of the fiscal treaty: If we vote No, we will be unable to borrow money to fund public services. There will be no stability and so the ATM machines will seize up.

The Government’s case comes down to access to the European Stability Mechanism fund. This is a €700 billion firewall that euro zone governments can draw on if other borrowing costs are too high.

Until recently Fine Gael and Labour claimed that Ireland would not need a second IMF- ECB-European Commission programme of cuts. They argued that austerity would produce a recovery by giving confidence to investors. They are now saying though that Ireland may need “insurance” and the only way to guarantee access is by voting Yes.

This argument demands far more scrutiny. When terms such as a “second bailout” are used, it suggests that the IMF and commission are trying to help the Irish population. In reality, a second programme would involve even more stringent conditions.

The ESM treaty – which is due to be voted on in the Dáil after the referendum – states that the funds would come with “strict conditionality”

full article at source:http://www.irishtimes.com/newspaper/opinion/2012/0529/1224316859070.html

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