Ireland will be the first country in the eurozone to give a democratic
verdict on the German-backed rules for the single currency after Dublin
announced it would hold a referendum on the treaty.
The euro declined on foreign exchanges after the Irish prime minister Enda Kenny told the Dáil that the Republic's chief law officer had advised the cabinet that "on balance" a referendum should be held under the terms of the Irish constitution.
Kenny is now expected to fight for concessions from Brussels on the terms of Ireland's swingeing euro bailout as the price for heading off a potentially embarrassing electoral rejection of the "fiscal compact" tightening rules for the 17 eurozone members.
Ireland, which has twice rejected EU treaties, must hold a referendum on any international treaty that has an impact on the country's sovereignty. The plebiscite on the EU fiscal compact would have to be held by Easter and by June at the latest.
The taoiseach said: "It gives the Irish people the opportunity to reaffirm Ireland's commitment to membership of the euro, which remains a fundamental pillar of our economic and jobs strategy. More binding and enforceable fiscal rules as a result of ratification will be good for both Ireland and the wider eurozone, and will cement growing international confidence in Ireland's recovery."
Neil Mellor, of the bank BNY Mellon, said Dublin's announcement raised fresh doubts about the future of the single currency, even before the latest bailout for Greece has been released. "It's death by a thousand cuts," he said.
Kenny was elected with a promise of extracting a better deal from Brussels and the ECB over the terms of the Irish rescue package, first agreed in November 2010. Sony Kapoor, of Brussels-based thinktank Re-Define, said the Irish government should win the referendum, which will be held in the summer – but only if Dublin can show that it is getting a good deal.
"If you look at Ireland and where it is now, the government is probably going to package it in a way that makes it more saleable, and link it to continued support – but they will press for concessions from Brussels, and they should get them."
Read more: http://www.libertynewsonline.com/article_306_31958.phphttp://www.libertynewsonline.com/article_306_31958.php
The euro declined on foreign exchanges after the Irish prime minister Enda Kenny told the Dáil that the Republic's chief law officer had advised the cabinet that "on balance" a referendum should be held under the terms of the Irish constitution.
Kenny is now expected to fight for concessions from Brussels on the terms of Ireland's swingeing euro bailout as the price for heading off a potentially embarrassing electoral rejection of the "fiscal compact" tightening rules for the 17 eurozone members.
Ireland, which has twice rejected EU treaties, must hold a referendum on any international treaty that has an impact on the country's sovereignty. The plebiscite on the EU fiscal compact would have to be held by Easter and by June at the latest.
The taoiseach said: "It gives the Irish people the opportunity to reaffirm Ireland's commitment to membership of the euro, which remains a fundamental pillar of our economic and jobs strategy. More binding and enforceable fiscal rules as a result of ratification will be good for both Ireland and the wider eurozone, and will cement growing international confidence in Ireland's recovery."
Neil Mellor, of the bank BNY Mellon, said Dublin's announcement raised fresh doubts about the future of the single currency, even before the latest bailout for Greece has been released. "It's death by a thousand cuts," he said.
Kenny was elected with a promise of extracting a better deal from Brussels and the ECB over the terms of the Irish rescue package, first agreed in November 2010. Sony Kapoor, of Brussels-based thinktank Re-Define, said the Irish government should win the referendum, which will be held in the summer – but only if Dublin can show that it is getting a good deal.
"If you look at Ireland and where it is now, the government is probably going to package it in a way that makes it more saleable, and link it to continued support – but they will press for concessions from Brussels, and they should get them."
Read more: http://www.libertynewsonline.com/article_306_31958.phphttp://www.libertynewsonline.com/article_306_31958.php
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