PEOPLE’S NEWS News Digest of the People’s Movement pm www.people.ie | [email protected] No. 67 16 April 2012

Why it is important to have How can you argue that there must be a a referendum on the ESM referendum on the ESM when the Govern- ment and Fianna Fáil “opposition” refuse to countenance one? Thomas Pringle TD, patron of the Article 6 of the Constitution of Ireland proclaims People’s Movement, outlines the the right of the people “in final appeal to decide all reasons questions of national policy, according to the What is the European Stability Mechanism? requirements of the common good.” From 2013 the ESM will The Supreme Court laid down in the Crotty case have the responsibility for that, as legal sovereignty in this state rests with the providing loans to -zone Irish people, only they can surrender sovereignty to member-states in difficulties— the EU by referendum (or refuse to surrender it, as strictly conditional on the the case may be). implementation of a range of The ESM is for much more than making perma- “adjustment measures” and if nent the temporary mechanism by which Ireland, the granting of the assistance Greece and Portugal are at present being “bailed is considered indispensable to out.” It is a surrender in matters of control of safeguard the “stability of the euro area as a national economic policy necessitating an amend- whole”—or, to put it more accurately, “assistance” ment to an EU treaty. The purpose of a referendum conditional on turning a recipient country into a would be to determine whether or not the Consti- social and economic wasteland for the greater good tution should be changed so as to make EU law of the euro. superior to Irish law in the area set out in the pro- And Éamon Gilmore has confirmed that it is the posed amendment. Government’s intention to pass the treaty in the Dáil The refusal of the Government to publish the following the referendum on the Permanent opinion of the former Attorney-General, Paul Austerity (Fiscal) Treaty on 31 May. Gallagher, and any legal opinion it has obtained since coming into office attests to the fear among the Fine Why amend the Treaty on the Functioning of Gael-Labour Party-Fianna Fáil troika of an assertive the European Union to establish the ESM? public opinion demanding what is the democratic The EU authorities propose amending one of the and constitutional right of the citizens of this EU treaties, the Treaty on the Functioning of the country. European Union, to give themselves a legal basis for Government decisions of fundamental impor- establishing the ESM, using one of the self-amending tance for the future of this country for generations provisions of the Lisbon Treaty. The Government to come, such as the disastrous bank guarantee and, proposes ratifying this amendment without refer- more recently, the EU-ECB-IMF “bail-out,” were ence to the people by way of a referendum. Part of made without reference to the citizens. The almost the existing temporary EU “bail-out” arrangements seamless continuity between the policy of the new will end in 2013. Government and that of the previous one has The ESM was established under article 122 (2) of denied citizens an opportunity to say Yes or No to the TFEU but is under challenge in the German Con- those decisions. stitutional Court. The German Chancellor, Angela Merkel, and French President, Nicolas Sarkozy, What will Ireland’s ESM financial liability be? determined towards the end of 2010 to try to head The state will be legally obliged to the ESM to the off any further constitutional challenge and at the tune of approximately €11.13 billion—€1.28 billion same time to take a further significant step along the in cash and the rest in the form of callable capital road to total EU control of the economic policies of and guarantees. Ireland has not been given an opt- weaker member-states. The ESM, together with the out. Euro Plus Pact, is a quantum leap in EU economic government.

1 But that’s not the figure the Government euro-zone country might have to provide between gives! 2013 and 2017 could be higher than foreseen. No. The Tánaiste, Éamon Gilmore, gave a figure According to the decisions of the EU summit of €9.87 billion in response to a question from me in meeting in March, Germany would pay €21.7 billion the Dáil on 13 April 2011, but in fact the country’s out of the €80 billion of paid-in capital for the ESM. contribution is a set 1.59 per cent of the total sub- Merkel had insisted that the German government scribed capital of €700 billion, i.e. €11.13 billion. should be able to pay that money in five equal yearly Gilmore confused the subscribed capital figure of tranches of €4.35 billion, which would be counted €700 billion and the callable capital and guarantee as expenditure in the budget. figure of €620 billion when making the calculation. But the auditors pointed out that this agreement becomes invalid if one country is unable to bear its But was Gilmore not at least correct to claim share of paid-in capital and if at the same time that “the manner in which the ESM is struc- another state requires the aid of the ESM. In that tured means that each country’s contribution case the rate of paid-in capital in relation to its total will not affect its general government deficit”? of €700 billion could decline under the 15 per cent There is no cheap, troublle-free way out of the that is required by the rating agency to guarantee present crisis, and certainly not through buying in to the ESM AAA rating. In that case the ESM share- the ESM. Ireland will have to issue debt or borrow holders could decide by simple majority—and, as a to raise the money to be able to pay the €1.29 consequence, against Germany’s wishes—that the billion of paid-in capital for the ESM. This is money capital stock, and therefore the German contribu- that could make a substantial contribution to the tion, needed to be increased. This anomaly applies survival of the country’s health service or our wel- equally to Ireland, Greece, and Portugal. fare and education systems. Also, after 2013 will be But for weaker euro-zone countries there is an the worst time to be lumbered with such a commit- additional problem. With regard to callable capital ment. We should have exited the present EU-ECB- and guarantees, euro-zone countries like Ireland will IMF “bail-out” regime from late 2012 and returned be required to pay cash down. Germany and France, to the market. whose sovereign bonds have an AAA rating, would The country would (in theory) have to refinance not need to put up actual money to cover any short- a lot of its own debt from the bail-out, and at the fall of paid-in capital: a guarantee would do. same time go into additional substantial debt to pay But as a guarantee has to serve as the equivalent its share of the ESM. In short, the ESM simulta- of a prepaid cash payment, a guarantee by a non- neously would make our bonds riskier and more AAA country would not cover the shortfall, so susceptible to restructuring and require more of countries with lower ratings (yes, you guessed them those very bonds to be issued, in order to pay for correctly!) would have to pay cash. itself. So we are in a perverse situation. Countries with easy access to capital can provide cheap guarantees, But isn’t this an example of EU solidarity? while the weak countries must put up cash. The ESM would need €700 billion in order to borrow the €500 billion that would constitute its PM pamphlet lending capacity: €80 billion in paid-in capital and €620 billion of “committed callable capital.” And The People’s Movement pamphlet The European Ireland, Greece and Portugal, the three countries Stability Mechanism and the Case for an Irish Referen- that are now being subjected to euro-zone austerity dum can be found at www.people.ie/eu/esmref2.pdf . schemes, will together be required to cough up or guarantee €49 billion of that sum. This is not “soli- Referendum appeal darity,” it’s robbery. The People’s Movement intends to mount a vigor- Could a situation arise whereby Ireland, ous campaign in opposition to the EU Permanent Greece and Portugal would have to fork out Austerity Treaty, also known as the Fiscal Compact more cash? Treaty. The referendum is The German court of now only six weeks away, auditors recently showed and we will be opening an how this could happen. In a office next week. Our first report to the Bundestag’s leaflet has been drafted, budgetary committee, the the first meetings have court discovered that the been held in Galway, Sligo, paid-in capital that Germany and indeed any other and Mullingar, with more

2 planned for the coming weeks, and we are now dis- mail or not, it’s a question that we will have to have cussing campaign posters. answers for. The People’s Movement has not got a paying 1. Even if we don’t ratify and we can’t gain access membership base and relies on voluntary contribu- to the ESM, Ireland is small but important for the EU tions in order to raise funds. Referendum campaigns financial system, and so funds will be found else- are expensive—one poster costs about €10—which where outside the ESM structures to lend to us. This gives the advantage to larger parties on the Yes side, would certainly be the case if such assistance was, in which even enjoy subsidies from the taxpayer! the words of the ESM, “indispensable to safeguard So once again we are asking for your support. the financial stability of the euro area as a whole.” We realise that these are difficult times, with many Remember “contagion”! calls on your resources; but it is salutary to reflect 2. If the EU doesn’t come up with the money we that permanent austerity lies before us if we accept are entitled to apply to the IMF, and their interest this treaty, and that things will only get worse. This rates and conditions were more favourable than treaty would also be signed in perpetuity. those of the EU and ECB! This is the same fall-back Please send what you can to: People’s Move- that all EU countries are entitled to as members of ment, 25 Shanowen Crescent, Dublin 9, or to our the IMF. After all, more EU countries have obtained account: Ulster Bank, 33 College Green, Dublin 2 IMF support than EU support in the last decade: (sorting code 98-50-10), account no. 06330039: , , , , , IBAN: IE61 ULSB 9850 1006 3300 39. , and Estonia. All contributions to the campaign will be 3. and Britain acknowledged. both advanced loans at a favourable rate to supple- Everything to fight for ment our first bail-out. Norway has a pension —Let’s make a big effort! reserve fund of more than €500 billion and might be similarly inclined. When Argentina defaulted it was kept afloat by a number of countries until it re-entered the markets. 4. In the unlikely event that we get no loans and have to close the deficit, we can do so through insti- tuting a progressive tax system, including a wealth tax (we have more than 20,000 declared million- aires) to fund social services. 5. The remaining money can be found through renegotiating (partially defaulting on) foreign debt. This would take courage and resolve but would ulti- There is only a “fragile majority” in favour of the Yes mately be successful. The debt will have to be re- side, and the referendum needs a “full-scale general negotiated in a a few years’ time anyway. election-sized effort,” according to Dr John 6. Regardless of the referendum vote, Ireland is O’Brennan, director of European studies at NUI, guaranteed funds under the current programme as Maynooth. The latest opinion polls demonstrate a long as it meets its targets. Michael Noonan said “very solid majority [of] 44 per cent to 29 cent in recently: “There is a commitment that if countries con- favour” of the treaty, he said, but “we’ve been here tinue to fulfil the conditions of their programme the before.” In 2001, before the Nice Treaty, and in European authorities will continue to supply them with 2008, before the Lisbon Treaty, an opinion poll money even when the programme is concluded . . . The showed 46 per cent to 23 per cent in favour. commitment is now written in that if we are not back in the markets the European authorities will give us “Ah, but where will we get the money until we get back in the markets.” money if we don’t vote Yes?” It is difficult to find a strategy, other than borrow- ing or selective taxation, that would create growth One of the main positions taken by the Government so quickly as to prevent a second bail-out, or close in support of the Austerity Treaty is that of black- the deficit if a second bail-out was denied. But this is mail: Vote Yes or there will be no money from the a rich country, and a number of strategic demands European Stability Mechanism when we need must be advanced to establish a new political and another bail-out—despite their continued mantra economic direction that would comfortably extract that such a bail-out will not be needed! But, black- Ireland from its present situation even if over an extended period. These demands include:

3 • support for indigenous industries and the protec- tion, reform and diversification of remaining state And where will we get and state-sponsored companies, all of which are the money from? under threat from the provisions of the EU-IMF memorandum; Not from Providence anyway—unless • the establishment of a constitutionally guaranteed things change radically State Development Bank to support families, small The commercially viable farmers and small businesses and of a develop- Barryroe oil well recently ment corporation to plan for sustainable growth; announced off the coast of • the nationalisation of our natural resources and Co. Cork can pump oil at a utilisation of the vast wealth and potential that rate of about 4,000 barrels a exists; day—a good indication that The Government estimates that we possess the well has decent €700 billion in proven reserves of oil and gas resources, particularly when alone—all of which is exploited by trans- the explorer, Providence Resources, says the well national companies. could have a total capacity of a billion barrels. Add to this The present price of a barrel of crude oil stands the largest lead at $120—meaning that, if the price held steady, the and zinc mine in well could have a total trade value of $120 billion, or Europe, and about €92 billion. But how much of that would the numerous other Government expect to receive? Under laws first mineral resour- introduced in 1987 and changed most recently in ces, including a 2007, Ireland doesn’t take any stake in an oil venture gold mine —nor does it require any explorers to guarantee any worth €8 billion. There is no state sharehold- supply to Ireland. ing in any of these projects; in effect, no So, even though oil and gas would be recovered royalties are paid and there is an immediate from Irish waters, there is no implicit guarantee that write-off of development and exploration it could be used to offer supplies for Ireland—even expenditure. though, in some cases, the rigs drilling for oil could Of course there are no restrictions on the be visible from the Irish mainland. repatriation of capital. It is difficult to estimate There is also no guarantee that the oil being har- how much revenue this would generate by vested from Ireland could be sold back to Ireland at 2015, but it is unlikely to be significant enough a discounted rate. Instead the Government’s sole in the short term. revenue—if any—is through corporation tax, where- • the repatriation of power over our seas and by the state takes a 25 per cent cut of the profits marine life. made from the extraction of natural resources with- We provide 44 per cent of the EU’s fish catch in its territory. and hold only 4 per cent of quotas. The con- This rate can get higher in line with the servative estimate of the value of Irish fish company’s profits. Once the profit is 1½ times larger landed so far by other EU countries under the than the money spent on extracting it, the tax rate common fisheries policy exceeds €200 gets higher, up to a ceiling of 40 per cent when the billion. An immediate renegotiation of the fish ratio hits 4½:1. It sounds good, but this rate is among quota would generate more revenue from tax the lower rates of any country in the world. on the increased earnings of fishermen—and Norway’s tax, for example, is 75 per cent; Britain’s is increased numbers at work in the industry. just above 50 per cent; only Cameroon levies a If you have any other practical ideas about how lower rate than Ireland! the deficit might be closed, particularly in the short- In exchange for this tax rate the Government term, please send them to post @people.ie . effectually signs over the ownership of the oil or gas. But the difficulty in trying to ascertain where In case you hadn’t noticed! Ireland’s sliding tax scale would kick in for Barryroe, or anywhere else, is “Europe’s vaunted social model—which places a simply that no explor- premium on job security and generous safety nets— ation operations have is already gone.”—Observations by Mario Draghi , yet begun since the president of the , in the Wall present tax regime Street Journal. came in. The extrac- tion of gas at Kinsale

4 took place under the previous tax regime in the reportedly also dropped a demand for euro bonds, 1970s. instead saying he intended to add to the treaty “the William Hederman, a journalist who maintains capacity for Europe as a whole to issue bonds, not the Irish Oil and Gas blog (irishoilandgas . to mutualise sovereign debt but to finance new wordpress.com ) fears that the open-ended nature development projects.” of the tax laws—which allow companies to deduct their exploration and development costs from their suggests that tax bill—could mean a smaller tax take than we it may join the EU fiscal pact might hope. “That can include costs going back 25 years before a field goes into production,” he says. “It During Angela Merkel’s could include other unsuccessful wells drilled. They can visit to the Czech Repub- write off the costs of other wells drilled in Irish waters.” lic the Czech prime minis- Not only that, but the fact that most companies ter, Petr Neas,č assured drilling in Ireland have larger operations abroad— her that his country and are more likely to bring workers from those would comply “de facto” sites to Ireland than to hire local people—means that with the conditions set out by the treaty, despite it’s possible that companies could claim tax refunds being the only EU member-state besides Britain not for cash spent abroad. to have signed the agreement. “The Irish taxman, I would suggest, is going to Both politicians discussed “the future of Europe” find it very difficult to establish just exactly what at an event at the Charles University in Prague, costs are related to the project,” Hederman states. where Neasč argued in favour of more “variable He points out that estimates offered by Éamon Ryan geometry,” whereby like-minded states could inte- in 2008 about the Corrib gas project suggested a net grate more closely together among themselves, tax take to the state of about €1.7 billion—less than while others could hold back. 18 per cent of the €9½ billion that the field was “Even if the Czech Republic has not yet signed worth at that time. He also says that a study com- the fiscal pact, we know that the Czech government piled by private consultants for Shell in 2003, which is keeping the option open,” said Merkel. She added gave a more realistic account of precisely how much that over the next twenty to thirty years “we will gas was available in those waters, suggested that the pool competences step by step, but we’ll only hand project would pay just over €340 million in tax. things over to Europe which can be done better in While the market price of such gas perhaps Europe.” doubled between those two dates, Hederman But on a visit to Paris last week the president of believes the net tax take from Corrib would be only the Czech Republic, Václav Klaus, reiterated that the about 7 per cent—and fears that a similarly low cut Czech government had rejected the EU fiscal pact could be taken for Barryroe. At present, he argues, because it would transfer national control over its private companies “get to keep it all, and do what national budget to Brussels. they want with it.” More flies in the ointment? Beating a retreat The minister for European and So he must be in with a chance! international affairs in the The campaign manager of the Baden-Württemberg regional French Socialist Party’s presi- government, Peter Friedrich, dential candidate, François has insisted that Germany’s Hollande, has confirmed that sixteen federal states ought to in the event of Hollande’s be involved in discussions on victory he would push for implementing the “Fiscal “pro-growth add-ons” to sup- Treaty,” given that they will be plement the budgetary disci- affected by its provisions, such as the constitutionally pline elements of the “fiscal embedded debt brake. treaty” on euro-zone govern- And a former German minister for justice, Herta ance, rather than renegotiating Däubler-Gmelin, will launch a legal challenge in the the treaty from scratch, as Hollande had argued for German Constitutional Court on behalf of the earlier. “More Democracy” campaign against both the Hollande—while backpedalling on previous, “Fiscal Treaty” and the ESM treaty establishing the much stronger comments—also questioned the permanent bail-out fund. She has argued that the EU exact role of the European Court of Justice. He has

5 plans “cross a red line” by transferring too much power from national parliaments to the EU level. People’s Pledge tastes success

And yet another fly in the ointment The People’s Pledge campaign in Thurrock, Essex, Constitutionality of the ESM which concluded at the weekend, issued 47,995 challenged in Estonia ballot papers, and 14,590 people returned them by The Estonian ombuds- post or voted electronically, equivalent to a turn-out man for children, of 30 per cent. Indrek Teder, has sub- The result will cause consternation among the mitted an application main parties in the British Parliament, which have all to the Estonian tried to ignore the issue. In a constituency where the Supreme Court, chal- winning candidate had a majority of 92 at the last lenging the constitu- election, no politician can afford to ignore fourteen tionality of the provision of the treaty establishing thousand local voters—almost as many as each of the ESM. The constitutionality of the treaty will be their parties polled in the general election. deliberated by the Supreme Court en banc, that is, The director of the People’s Pledge, Ian with all nineteen judges of the Supreme Court sitting McKenzie, commenting immediately after the figures together. An oral hearing will take place on 8 May were announced, said: “This turn-out is astonishing and continue on 9 May. and vastly exceeds anyone’s expectations, including The Supreme Court will involve the Bank of mine . . . Estonia, the minister of finance and the minister of “A turn-out this large proves two things. Firstly, elec- foreign affairs and will ask seven scientific research tors will respond to political activity that engages them. establishments and recognised jurists to submit their The myth of the disinterested citizen is just that: a opinions. The parties to the proceedings are myth. Knock on enough doors, respectfully explain why required to reply by 20 April at the latest. you are there, and if your message is strong enough “This may be one of the most serious judgements people will respond. And there’s a lesson there for all of in the twenty-year-long history of the Estonian us coming into our own referendum! constitutional review, therefore the Supreme Court “Secondly, the political parties at Westminster are will hear as many parties to the proceedings and as going to have to rethink their attitude to a national many experts as possible,” said the chief justice, referendum on the EU.” Märt Rask. The group plans to hold a further ten such local The constitutional question concerns the ESM’s referendums this year and a hundred in 2013. so-called emergency voting procedure, which, it is  For the latest results see www.peoplespledge . argued, is contrary to the Estonian Constitution and org/thurrock . “jeopardises the principle of parliamentary democ- racy, the principle of parliamentary prerogatives,” Intensified Irish austerity on the and the parliament’s autonomy over public finances. “This kind of rapid procedure can create a situ- cards, says the Commission ation that will force Estonia to allocate finances with- out having the right to influence the granting and —to the Bundestag! conditions of the financial aid,” Teder stated. “By The case for a Yes vote in the coming referendum ratifying the Treaty Establishing the ESM, Estonia will on the Fiscal Compact Treaty will not have been assume an extraordinarily large financial obligation: helped by the leaking of a in the worst-case scenario Estonia will be liable to report regarding the Irish economy. The report, provide up to €1.302 billion to the ESM. This sum which was seen by the German parliament, suggests corresponds to approximately 8½ per cent of that Ireland may have to implement further fiscal Estonian GDP.” “austerity” to compensate for the slowing growth Estonia’s ESM commitment “is much bigger than outlook. In addition, the report maintains that any other obligation we have had on the inter- Ireland’s return to the international markets may national level, and Estonian people have the justified have to be delayed. right to be involved through parliament in how that The need for further austerity advocated by the money will be used.” European Commission is somewhat at odds with the views of the IMF, which is of the opinion that if a

6 slow-down in growth derails Ireland’s fiscal plans, further austerity should not be implemented. The corrupt commissioner : This is the second time that information regard- Pee Flynn ing the Irish economy has been leaked through the German parliament, which must reinforce the view The EU Commission says it has no power to stop that we are being run by Frau Merkel and Co. the pension of any former member after it was called on to block Pádraig Flynn’s pension in the light of the Mahon Report. But it is open to the Commis- sion to make an application to the EU Court of Justice to have the pension of a former commis- sioner stopped. Members of the Commission are obliged, under article 245, to refrain from any action incompatible with their duties, and to give a solemn undertaking Greek ”austerity suicide” to observe the obligations arising from their duties prompts violent clashes after they cease to hold office; but that didn’t stop Flynn. A 77-year-old retired pharmacist, Dimítris In its report the tribunal accused Flynn of giving Christoúlas, struggling to cope with EU austerity “astounding, incredible and untrue” evidence to it, measures, shot himself in Constitution Square near and it concluded that Flynn had “wrongfully and cor- the Greek parliament in Athens. He pulled the trig- ruptly sought a substantial donation” for Fianna Fáil ger after shouting, “I have debts. I can’t stand this from the developer Tom Gilmartin and then went any more.” The police said that his suicide note on to employ the £50,000 he received for his per- blamed politicians and the country’s financial crisis. sonal benefit. Protesters and police clashed in Athens following In 2006 the court made a ruling against the the suicide, with petrol bombs hurled and tear gas former French commissioner Édith Cresson but fired. Hundreds of demonstrators gathered in the imposed no penalty in the form of a deprivation of square outside the parliament, where many anti- her right to a pension or other benefits. It found that austerity protests have been held in recent months. she acted in breach of her obligations as a commis- The pensioner’s death encapsulates the desper- sioner but said this finding by itself constituted an ation of Greece’s older generation, who have had appropriate penalty, having regard to the circum- their pensions and benefits cut by up to 25 per cent. stances of the case. Police data shows a 20 per cent increase in suicide It is timely to recall rates since the debt crisis hit Greece in 2009, while Flynn’s whine on the “Late the Ministry of health and Social Solidarity estimates Late Show” about the diffi- that the figure was almost double that in the first five culties of maintaining three months of 2011, compared with the first five months houses, when he also of 2010. asserted that he “never Meanwhile the leader of the New Democracy took money from anybody party, Antónis Samarás, in a critique of EU austerity to do a political favour as measures, argues: “But what country can lose so much far as planning is con- in such a short time? And what democracy can sustain cerned.” That’s when he also described Tom so great a shock with such poor results? Two years ago Gilmartin as a man “who was not well” and whose our debt-to-GDP ratio was 120 per cent. Two years of wife was not well. This was a turning-point in the severe austerity brought debt to 168 per cent of GDP. planning and payments tribunal, and the rest is Obviously the medicine didn’t work. history. Just to remind yourself: www.youtube.com/ “We need to allow for a recovery to jump-start the watch?v=s8T0Q03oJSc . Greek economy. The longer we are stuck in such a self- The shameful thing is that none of these crooks perpetuating recession, the more we will drift away will ever be brought to justice in Ireland, nor has from our targets.” there been any real consideration of depriving them And the proposed EU Permanent Austerity of further public money. But the Garda Síochána has (Fiscal) Treaty that we will vote on at the end of May recently taken an interest in some of the cases. seeks to perpetuate this situation for the benefit of banks and other financial institutions. Even greater secrecy in Brussels The right of journalists and ordinary citizens to gain access to internal EU documents is governed by a

7 regulation introduced in 2001. But it is already diffi- Two years after the law comes into force, all cult to gain access, because there is no simple cross-border European co-operative societies registry of what documents exist and also because it would have to take part. After five years it would be can take long legal battles to make institutions drop compulsory for all companies, apart from small and their objections—for instance on the grounds that it medium-sized enterprises. would violate people’s privacy or threaten national Under the Commis- security or that there is no “overriding public sion’s plan, put forward interest” in publishing particular information. by the commissioner for Now several EU member-states want a new defi- taxation, Algirdas Šemeta, nition of what constitutes an “EU document” to in March last year, firms exclude vast swathes of material—such as informal would be allowed to opt e-mail messages—from access. to remain under the corporate tax structure of the The EU Council, the European Commission and country where they are based, as is the case now. most countries are also keen to exclude documents The proposal could yet be advanced by relating to the appointment of senior officials and “enhanced co-operation,” whereby a smaller judges and to introduce “special protection” for number of member-states decide to go it alone. papers on competition cases, proceedings of the EU Šemeta confirmed that it was an option when he Court, infringement proceedings, and legal advice appeared before the Parliament last month. And not given by EU institutions to their own policy-makers. a word from Kenny et al. about the corporation tax The pro-secrecy trend comes at a time when EU that wasn’t on the table! bodies are getting important new powers on the supervision of national budgets. Remember the Some recent gems! Lisbon Treaty, which declares in its opening words that it wants “an ever closer union among the Marc MacSharry (Fianna Fáil): “One peoples of Europe, in which decisions are taken as would have to welcome the developments openly as possible.” in the past number of days [the promissory A contact at the Danish presidency stated that notes circus], but the reality is—not to take they are fighting a losing battle. ”Looking at past dis- from the negotiating ability of the Government cussions, you basically have three to five EU delega- team, whom we support—[that] Europe has thrown tions on one side [pro-transparency] and everybody us a bone, Europe owes us big time. The people, else on the other side,” he said. So it seems that is through no fault of their own, were forced to accept envisaged is an “ever closer union” among the austerity measures and take on the cost of the bank Brussels elite, while the rest of us are kept in the guarantees and very prohibitive measures that dark. nobody would ordinarily set out to implement. As a result, in my view, and history will prove it correct, MEPs to back accelerated the euro was saved. For that reason, Europe was common consolidated tax plan entitled to give the concession on the promissory note. The reality is that there is an unsustainable Members of the European Parliament are expected level of debt and, by agreement, there must be a to put further pressure on member-states to reach concession given to the reality that there is too an agreement on plans for a common consolidated much debt and that issue will have to be addressed.” tax base at this week’s plenary meeting of the Euro- This is a bit confused: supporting the Govern- pean Parliament in Strasbourg. ment team, forced to accept austerity measures, we The issue is still deadlocked in the Council of saved the euro, etc., but in the end it’s down to Ministers, with several countries refusing to approve horse-trading with cap in hand. Sad! the plan, but MEPs are expected to vote in favour of Michael Noonan: “Many senators spoke the proposal on Wednesday next (18 April). about the jobs programme announced last Members of the Parliament’s economic and May and asked how many jobs had been monetary affairs committee, which voted on the created, and so on; but that is to misunder- issue on 21 March, expressed support for the plan stand the economy. It would be possible to answer and called for it to be more ambitious than the these questions if we were in a command-and- Commission had first proposed. control economy, such as those with which we were Members are expected to support a report familiar in eastern Europe before the Berlin Wall drawn up by Marianne Thyssen, a Belgian centre- came down. There a factory manager was able to right MEP, which says that a single set of rules for an outline how many he or she was supposed to EU-wide tax base should be obligatory for all com- employ before Christmas and how many more he panies after a short period of transition. or she was to take on before the spring.”

8 Seems he was making a good case for a com- Jörg Asmussen: Asmussen, one of six members of mand economy! the ECB’s executive board, referring to debts associ- Brendan Howlin: Government ated with the banking crisis but taken on by the Irish policy is “not an austerity strategy,” state, has warned that “any desire to offload this says Howlin. Writing in the Irish debt could have dire consequences” . . . for his Times, the minister was responding to banker friends, of course! an open letter from a number of economists warn- ing that continuing austerity measures would lead to Vote No to the EU Permanent economic stagnation. Austerity Treaty on 31 May !

People’s Movement · 25 Shanowen Crescent · Dublin 9 · www.people.ie 087 2308330 · post @people.ie

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