“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
Reblogged this on emigratesafe.com.
Very Good Mach,
Telling it like it is as usual, keep up the good work.
Mach, you know I’ve been banging on for a long time about Peter Sutherland, GoldmanSacks’
ex Irish Attorney General , now head of GS’ European operations , and his unfettered access and influence with the two Brians in the last Government. The fact that he cajoled these career politicians with no business or life experience, to pay Anglo’s unsecured Bonds, especially the $5.5 Billion Bond to his GS employers. Then, one week later, GS shared a $10 Billion Christmas bonus amongst it’s 35,000 global employees. That’s one example of the “Dire Circumstances” our lying leaders have told us that Anglo’s “Unsecured” Bondholders found/find themselves in!!
As you well know, if this stupidity, treachery and spinelessness didn’t permeate the mindset of our career politicians, we wouldn’t be in this horrific hole. Do you think all the Bonds have been paid back or is there hope that if we exile our entire, extended political class, and start from scratch,
that we may save our Country from the Franco/Prussia occupation?
That’s my rant, for now!
Paul maher