Fiscal Compact should be scrapped, not incorporated into Treaty - Carthy
Sinn Fein MEP Matt Carthy has called for the Fiscal Compact to be scrapped instead of copper-fastened into EU law during a European Parliament debate in Strasbourg this week on incorporating the Fiscal Compact into the EU Treaty at the end of this year.
Addressing MEPs during the debate, Carthy, a member of the Economic and Monetary Affairs Committee, said:
"It is just astounding to me that so many members of this Parliament and Member States want to permanently impose an austerity straitjacket on the entire EU by inserting the Fiscal Compact into the Treaty.
"The evidence is stark – the Fiscal Compact has prolonged the downturn, stifled growth and ensured that stagnation is the 'new normal'. It has tied the hands of governments in diverse countries who are now entirely reliant on the ECB’s one-size-fits-all monetary policies, which are running out of steam.
"Where are the strict rules to reduce current account surpluses that will inevitably cause a new debt crisis?
"Just a single Member State could veto this move to enshrine this failed model in the Treaty. But will any EU government have the courage to say the German model doesn’t work for us?
"The failed austerity model has directly caused the rise of the far right in Europe, and a crisis of legitimacy for the EU institutions. We have the opportunity to shake off the straitjacket. If we don’t, the EU’s political and economic crisis will become a political and economic catastrophe."