Rejection of Fiscal Stability Treaty full of dangers for Ireland – McGrath

A rejection of the Fiscal Stability Referendum, due to take place on May 31 ^st , would be full of dangers for Ireland, according to Fianna Fáil Finance Spokesperson Michael McGrath.

Deputy McGrath said: “With less than six weeks left to polling day, it is essential that the Irish people are fully informed of the implications of voting Yes and of voting No. I believe that the rejection of the Treaty would result in a dramatic increase in the cost of borrowing for Ireland and would impede our economic recovery.

“Those who seek to characterise the Fiscal Compact as ‘an austerity Treaty’ are being highly disingenuous. They are trying to give the impression that rejecting the Treaty would mean Ireland could avoid further austerity. Nothing could be further from the truth. Are the opponents of the Treaty really suggesting that the financial markets would seek to exact less of a price from Ireland than our current international lenders in return for continuing to fund the country?

“The unpleasant truth is that the process of closing Ireland’s budget deficit, which started in July 2008, will have to continue for a number of years. However, it is a great deal more palatable to continue that process with the backstop of international funding if required rather than being entirely at the mercy of the markets. Sinn Féin and others would be quite happy to expose Ireland to this enormous risk if they could benefit politically in the process.

“Sinn Féin leader Gerry Adams has already said the IMF should ‘be sent home and take their money with them’. The party now also wants Ireland to close off the option of future funding from the European Stability Mechanism by rejecting the Treaty. This begs the question, should the referendum be defeated, where exactly would Sinn Féin source the money to run the country? Or perhaps they favour closing the budget deficit in one year, with unimaginable consequences for the Irish people.”