Treaty will protect us -- Lenihan
Minister insists goodwill from Europe vital for small nations
FINANCE Minister Brian Lenihan said yesterday the passing of the Lisbon Treaty would help to protect smaller countries like Ireland.
Mr Lenihan also warned international markets will not understand a 'No' vote as it would be seen as Ireland voting against its own interests.
The minister said confidence was impalpable and goodwill is important to Ireland. "The ECB (European Central Bank) has worked very closely with Ireland and we need every ounce of goodwill we can get in Europe at present.
"I am not suggesting the ECB will somehow turn off the tap if Ireland votes 'No'. That won't happen. But the real world isn't like this. The real world is not about paper treaties. The real world is about goodwill, especially for a small country like Ireland," he said.
The minister was adamant the cost for the Government of borrowing money would be affected by the result of the referendum. "A 'Yes' vote will deepen international confidence in our economy and make it cheaper for us to borrow on world markets," he said.
Mr Lenihan said the Lisbon Treaty was vital for a country like Ireland as it gave the protection of rules and the cover of institutions like the European Commission and the ECB.
"That is why the Lisbon Treaty is very good for Ireland, because the best protection for the smaller states is a treaty founded in the rule of law, because otherwise you have the rule of the jungle with larger states asserting their muscle to the detriment and disadvantage of smaller states," he said.
Mr Lenihan rejected suggestions the Government was thankful for the economic crisis as it helped to focus minds ahead of the referendum. "We can't speculate about a hypothesis. If we didn't have the crisis, the Government might not be unpopular. How many variables are in the equation?" But he said the EU and the treaty are central to economic recovery.
Backing up the Government's argument, the Irish Taxation Institute (ITI) yesterday stated the Lisbon Treaty will not interfere with national tax policy.
ITI president Olivia Lynch said Ireland has "nothing to fear from the Lisbon Treaty" on the taxation front.
"The treaty comes with a specific guarantee on taxation. This new guarantee is crystal clear in stating that nothing in the Lisbon Treaty makes any change to the EU's competence with respect to taxation," she said.
- Fionnan Sheahan
