Fiscal Compact Treaty - Just the Facts - Mythbusters – from the European Movement Ireland

The Compact Fiscal Treaty Referendum May 31

North West TDs and businesses met at Government buildings in Dublin this week to discuss the importance of a Yes vote in the Stability Treaty referendum. Pictured ahead of the meeting, which was organised by IBEC, were (l to r) Brendan Sugrue, Plant Manager of Hollister and IBEC North West Regional Director; Michelle Mulherin TD, Aaron Forde, CEO Connacht Gold, Senator Michael Mullins(Galway) and Senator Martin Conway (Clare).

North West TDs and businesses met at Government buildings in Dublin this week to discuss the importance of a Yes vote in the Stability Treaty referendum. Pictured ahead of the meeting, which was organised by IBEC, were (l to r) Brendan Sugrue, Plant Manager of Hollister and IBEC North West Regional Director; Michelle Mulherin TD, Aaron Forde, CEO Connacht Gold, Senator Michael Mullins(Galway) and Senator Martin Conway (Clare).

With a media blackout on the treaty from next week, below is a ‘mythbuster’ article on what lies ahead following the referendum on May 31, as supplied to the Mayo Advertiser this week by the European Movement Ireland.

Will Ireland be kicked out of the Eurozone if we vote No?

It is currently legally impossible to be kicked out of the Eurozone or the EU, however, the Lisbon Treaty does allow member states to leave voluntarily.

Will a Yes vote lead to an increase in the water tax and household charge?

The water tax and the household charge can only be increased through an action from the Government, not from the treaty.

Will the treaty be vetoed if we vote No?

Unlike the Lisbon Treaty, the Fiscal Treaty only needs 70 per cent (or 12 out of 17 ) of the Eurozone members to ratify it for it to come into force.

Will a Yes vote lead to more jobs in Ireland?

There is no guarantee that the treaty will secure the economic growth that would lead to more jobs in Ireland.

Does the treaty affect Ireland’s corporation tax rate?

The treaty does not deal with taxation policies of member states, so Ireland’s corporation tax rate remains untouched.

Will Ireland be able to secure a second bailout if we vote No?

Ireland would not be able to get a bailout from the ESM, the EU’s new bailout mechanism. Other suggested sources for future funding are heavily disputed.

Does the treaty take away policy flexibility during an economic crisis?

Flexibility from the fiscal rules is allowed in exceptional circumstances, eg, a severe economic downturn.

Voting information

Voting will take place between 7am and 10pm on Thursday 31 May. If you are registered to vote, you should receive a polling card with your electoral number and information regarding your polling station. When voting, bring this polling card or official photographic ID to your polling station. For more info, see www.checktheregister.ie The Just the Facts Information Sheets are available to view and download from www.europeanmovement.ie

 

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