DUBLIN—Irish voters deliver their verdict Thursday on a European Union treaty designed to bring financial stability to the euro zone by binding countries to tougher rules on balancing their budgets.
Opinion polls in recent weeks have consistently shown a resounding victory for the treaty in the country that rejected EU treaties in 2001 and 2008. But unlike those public votes, which were crucial, this treaty doesn't hang on Ireland's ratification.
Endorsement would send the message to investors that Ireland is committed to its place in Europe and the euro zone, and will help pull it out from its debt crisis, the government has said.
Rejection could cut the country off from more emergency cash when its bailout expires at the end of next year. Because Ireland is the only country holding a public vote, a rejection also could undermine the treaty's political legitimacy.
The treaty has sharpened a debate here about whether Europe's austerity drive is the best path for the country to recover from its financial crisis, now in its fifth year.
Engulfed by huge bank-rescue costs, Ireland sought a €67.5 billion ($83.47 billion) bailout from the EU and the International Monetary Fund in late 2010.
Polls have shown about a third of eligible voters were undecided or would not vote, suggesting the turnout could be low. Polls close at 9 p.m. GMT Thursday, and the counting starts at 8 a.m. GMT Friday.
The aim of the fiscal pact is to make sure the euro area is a stable currency system.
It introduces tougher rules on budget discipline and forces countries to do more to coordinate economic policies. It also seeks to improve the way they manage the euro zone by strengthening its governance system.
The United Kingdom and Czech Republic were the only countries in the 27-nation bloc that didn't sign up for the fiscal treaty, which must be approved by 12 of the 17 euro-zone countries to take effect. Of the 25 others, only Ireland is holding a public vote, as required by its constitution.
Led by Gerry Adams' Sinn Fein party and other left-wing opposition lawmakers, proponents of a "no" vote have urged rejection to protest the austerity entailed by the Irish bailout program.
They have dubbed the fiscal treaty "the austerity treaty" and say it will impose an unending cycle of spending cuts and tax rises on indebted Irish households.
Voting "no" would help persuade EU leaders abandon "failed" austerity policies and help promote growth as the solution for the continent's debt crisis, Mr. Adams has said. Ireland rejected the Nice Treaty in 2001 and the Lisbon Treaty in 2008.
wsj.com
Opinion polls in recent weeks have consistently shown a resounding victory for the treaty in the country that rejected EU treaties in 2001 and 2008. But unlike those public votes, which were crucial, this treaty doesn't hang on Ireland's ratification.
Endorsement would send the message to investors that Ireland is committed to its place in Europe and the euro zone, and will help pull it out from its debt crisis, the government has said.
Rejection could cut the country off from more emergency cash when its bailout expires at the end of next year. Because Ireland is the only country holding a public vote, a rejection also could undermine the treaty's political legitimacy.
The treaty has sharpened a debate here about whether Europe's austerity drive is the best path for the country to recover from its financial crisis, now in its fifth year.
Engulfed by huge bank-rescue costs, Ireland sought a €67.5 billion ($83.47 billion) bailout from the EU and the International Monetary Fund in late 2010.
Polls have shown about a third of eligible voters were undecided or would not vote, suggesting the turnout could be low. Polls close at 9 p.m. GMT Thursday, and the counting starts at 8 a.m. GMT Friday.
The aim of the fiscal pact is to make sure the euro area is a stable currency system.
It introduces tougher rules on budget discipline and forces countries to do more to coordinate economic policies. It also seeks to improve the way they manage the euro zone by strengthening its governance system.
The United Kingdom and Czech Republic were the only countries in the 27-nation bloc that didn't sign up for the fiscal treaty, which must be approved by 12 of the 17 euro-zone countries to take effect. Of the 25 others, only Ireland is holding a public vote, as required by its constitution.
Led by Gerry Adams' Sinn Fein party and other left-wing opposition lawmakers, proponents of a "no" vote have urged rejection to protest the austerity entailed by the Irish bailout program.
They have dubbed the fiscal treaty "the austerity treaty" and say it will impose an unending cycle of spending cuts and tax rises on indebted Irish households.
Voting "no" would help persuade EU leaders abandon "failed" austerity policies and help promote growth as the solution for the continent's debt crisis, Mr. Adams has said. Ireland rejected the Nice Treaty in 2001 and the Lisbon Treaty in 2008.
wsj.com
No comments:
Post a Comment