Tuesday 17 January 2017

Colm McCarthy: If there is a vote, we'll simply have to say 'yes'

Talk of a referendum on the fiscal compact is just detracting from focus on our deficit, writes Colm McCarthy

Published 05/02/2012 | 05:00

THE fiscal treaty agreed by almost all EU leaders in Brussels on Monday last has been spun as a vital component in the strategy to save the euro.

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As an exercise in addressing the eurozone's twin banking and sovereign debt crises, the fiscal compact makes no worthwhile contribution. The source of these problems lies in the flawed design of the common currency, and this cannot apparently be admitted by the European political leadership.

So the treaty instead addresses a non-problem: in a nutshell, countries whose public finances are overstretched, and which consequently cannot borrow, will be forbidden from borrowing.

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