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Government must come clean on bailout fund link to Austerity Treaty

12 March, 2012 - by Pádraig Mac Lochlainn

Speaking today Sinn Fein spokesperson Padraig Mac Lochlainn called on the government to stop trying to bully people with claims that rejection of the Austerity Treaty will prevent access to emergency funding in the future and to “come clean on the link between bailout funds and the Austerity Treaty”.

Deputy Mac Lochlainn said:

“In recent days the government has said that failure to ratify the Austerity Treaty would leave Ireland unable to access emergency funding if the state needed a second bailout.

“However what the government isn’t telling people is that they have a veto on the Treaty change upon which the bailout funds link is based.

“The European Stability Mechanism is to be the EU’s emergency funding mechanism from the middle of 2012. It is based on a European Stability Mechanism Treaty which has not yet been ratified. Its ratification is dependent on the ratification of an Amendment to Article 136 of the EU Treaties.

“While the Government cannot block the ratification of the ESM Treaty, it does have a veto over the ratification of the amendment to Article 136 of the European Treaties. The ratification of this amendment will come before the Dáil shortly in the form of a European Communities (Amendment) Bill.

“The link between ratification of the Austerity Treaty and future access to ESM funds was supported by the government in February this year. They could have blocked it but chose not to.

“Sinn Fein is now calling on the Government to do the right thing and insist that this clause is removed from the ESM Treaty and the Austerity Treaty. It has a veto on this matter and must use it.” ENDS

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