The EU Stability Treaty – Why Business Needs to Vote Yes

By its very nature, the Treaty is designed to give increased stability in Ireland and to ensure that we never find ourselves in our current situation again. So why should we vote yes? And why is it important for Irish business?

  • Deliver enhanced confidence. The Treaty means less risk and less uncertainty. Confidence will bring new investments and help us to create more jobs which will aid our economic recovery.
  • Ensure access to the European Stability Mechanism (ESM). The ESM could be a vital source of emergency financial assistance, if needed, when our current EU/IMF funding programme is completed. Only countries that sign the Treaty will be eligible to access this fund. If we cannot access this fund then Bond Market Funding will be much more expensive.
  • Better monitoring of Government decisions. The Treaty will legislate for closer monitoring of countries to take action well in advance of any possible crisis. Monitoring of this nature in the past could have helped Ireland avoid our current situation.
  • Exemptions for bailout countries. The Treaty is flexible in that the fiscal rules outlined in the Treaty are not applicable to countries in bailout programmes. This means that Ireland has until 2035 to reduce our debt to 60% of GDP.
  • Controlled budget deficits. The Treaty will ensure that the Government must manage its finances in the good times and bad.
  • Regain our economic sovereignty. The Treaty will ensure that the overriding fiscal policy priority for whoever is in Government will be to reduce our debt levels to 60% of GDP and allow us to stand alone on international markets.
  • No additional austerity. Approving the Treaty does not mean that we will face additional austerity but rather it ensures that we deliver on reform commitments already made.
  • Put simply, the Treaty will ensure that the Government spends wisely, saves for the future and regains our economic sovereignty so we can ensure that a stable economic environment is maintained in Ireland in the future.
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