Sinn Féin presents Taoiseach with their proposals for addressing the Euro crisis
Speaking after presenting the Taoiseach with his party’s proposals for how it believes the Euro crisis should be tackled and growth restored to the European economies, Sinn Féin spokesperson on Foreign Affairs, Pádraig Mac Lochlainn has stated that the evidence from the “Austerity Treaty” as it is emerging is that the Taoiseach and his fellow European leaders “either don’t understand the causes of this crisis or are in denial of them”.
Speaking in the Dáil Deputy Mac Lochlainn outlined Sinn Féin’s proposals before presenting the Taoiseach with a copy of them.
“This crisis is fundamentally about the failure of the one size fits all European monetary union model. The Euro led to the strengthening of core European economies, particularly Germany with increased trade surpluses and the deployment of this boon through reckless lending by the core members state’s banks to the peripheral member states.
“In Ireland’s case, to private banks who in turn lent recklessly, eventually creating a property bubble built on cheap credit.
“This Austerity Treaty is no solution to the crisis. Sinn Féin proposes the following four approaches which, combined, we believe can start to address this crisis and restore growth.
“Investment in jobs and growth. Increasing the lending capacity of the European Investment Bank so that by working with member states on major investment projects it can help stimulate activity in the real economy.
“Cleansing the European Banking system of toxic debts through a new round of rigorous stress tests and de-leveraging followed by recapitalisation where necessary funded by the European Central Bank.
“Debt-restructuring agreements for over indebted economies involving debt-write-downs to assist them return to debt sustainability. Ending the obligation on the state to pay the Anglo Irish Promissory Note and unguaranteed senior bondholders in Anglo and other banks.
“Within existing EU treaty provisions the European Council must ensure that the European Central Bank takes all necessary action to stabilise sovereign bond interest rates and ensure market access for all member states.
“I appeal to you Taoiseach and Tánaiste to reject this treaty, which condemns the Irish people and the people of Europe to a lost decade of harsh austerity, and give them hope. Our proposals are aimed at genuinely addressing this crisis and restoring hope to our people.”