Lisbon Treaty & eurozone consequences

Lisbon Treaty & eurozone consequences

The maximum Budget deficit permitted for the Eurozone countries is supposed to be 3% of GDP.

The new voting rules apply to the Eurozone countries also. There are 16 Eurozone countries. The delinquent State running an "excessive deficit" does not have a vote on whether sanctions are imposed on it or not. Thus under Lisbon 8 out of 15 States could impose sanctions on Ireland, even if the other 7 disagreed, as long as the 8 comprised between them 65% of the total Eurozone population of 300 million.

That contrasts with the present position, where two-thirds of the weighted votes of the 15 Eurozone States concerned would be needed to impose a strict enforcement regime, with the threat of the imposition of limitless fines and being required to make huge non-interest-bearing deposits with the Commission as backing for that sanctions regime.

If we vote Lisbon through, the Irish Government will be under huge pressure to bring our 12%-of-GDP deficit down rapidly to what the Brussels Commission considers to be a more manageable level, for otherwise our high borrowing in euros will affect all the other Eurozone countries borrowing in the same currency.

At present a special majority of two-thirds of the weighted votes of the Eurozone countries is needed to impose an enforcement procedure and sanctions on Eurozone countries that are running excessive budget deficits (Arts.104 and 122 TEC). Under Lisbon, 8 of the 16 Eurozone States, excluding the delinquent State (viz. 55% of the 16), could impose sanctions on a country running what they decide is an excessive deficit - as long as they have 65% of the 300 million Eurozone population between them. The State with the excessive deficit does not have a vote (Arts.126 and 238 TFEU; Protocol No.12 on the Excessive Deficit Procedure). Germany and France between them have nearly half the population of the Eurozone.

Category:

News & Politics

Tags:

• Lisbon
• treaty
• euro
• fine
• punishment
• democracy
• finance
• money
• Europe
• EU
• Ireland

[sirhcelah]

VOTE NO