“Pacta Sunt Servanda”
UPDATE Council Regulation 1177/2011
“Article 4 states that a country must not have a debt bigger than 60% of what it produces in a year (its GDP). If it does, it must reduce its debt by one-twentieth of the excess each year. This is an existing EU rule.”
Having read the Treaty booklet and the amendment;Council Regulation 1177/2011,
given that Europe is in recession it is highly likely that there will be severe GDP austerity cut backs applied from 2013 in addition to the existing Troika Fiscal cut backs. Remember Olli Rehn cut us no slack with the Anglo Bondholders and utterly humiliated our Minister of Finance Mr. Noonan. We can expect no quarter from the European Commission or the ECB so why put austerity cuts IN WRITING INTO A CONSTITUTION. A NEGATIVE INTERPRETATION OF REGULATION1177/2011 CAN BRING THE COUNTRY TO ITS KNEES AND ALLOW NO COUNTER CYCLICAL INITIATEVES WHEN NEEDED.
Under the new treaty we are told the letter of the law will be applied. (“Pacta Serva Sunt”: Olli Rehn is so quoted as saying that the Euro Community “is a community of laws” and as such “all written commitments must be fully adhered to”). Thus going forward, under the new paradigm, Ireland will not be allowed to have total government borrowings in excess of 60% of GDP. Ergo:
Our total debt is approx: 148 Billion Euro
Our GDP is approx: 156 Billion Euro
60% of GDP is approx: 94 Billion Euro
GDP Austerity Cuts approx: 54 Billion Euro over 20 years which means 2.7 Billion a year GDP Austerity cut.
Source: CSO Press Release November 2011.
Christopher M. Quigley 27th. March 2012