EUROPEAN GOVERNMENTS have reached a broad consensus on a narrow change to the Lisbon Treaty ahead of a key summit next week. They believe the revision will not transfer new powers to the EU and, therefore, may not necessitate another European referendum in Ireland.
Little more than a year after the Lisbon pact was enacted, the leaders of the 27 member states plan to sign off on an amendment which will explicitly empower them to bail out distressed euro countries.
Following a legal review by European Council president Herman Van Rompuy, they plan to execute the change by deploying an amendment procedure reserved for measures which do not transfer powers to the EU.
Although political haggling over the final text of the amendment continues, a diplomatic source said EU governments have reached agreement to make use of a simplified revision procedure in the Lisbon pact which would avoid the need to convene a constitutional convention.
While Dublin’s approach in the talks was to maximise the possibility of avoiding another EU vote, European diplomats believe a limited treaty change may not necessitate a referendum in Ireland.
The procedure – set out in Article 48.6 of the treaty – allows the EU member states to unanimously adopt a decision amending all or part of the main elements of the Treaty on the Functioning of the EU, which governs how the union carries out its work.
The decision to pursue this avenue is held to be significant in diplomatic circles as the procedure cannot be used for changes which increase the EU’s competences.
The Government is bound by the Crotty judgment of the Supreme Court, which holds that any significant transfer of powers to the EU from Ireland must be referred to the people.
The amendment is likely to be made to Article 136 of the treaty, which governs the operation of the euro zone. The basic text under discussion says: “Member states may establish a crisis resolution mechanism to safeguard euro zone stability.”
However, Germany has been pressing for the inclusion of further clauses which would say the mechanism can be used only as a last resort and with severe policy conditionality. Berlin also wants to insert a clause calling for private sector investors to take some bailout costs.
German diplomats have been arguing that the treaty provisions would be more binding if they were more detailed. Other countries have been resisting them, however, saying anything beyond the basic text could lead to legal challenges in the European Court of Justice whenever rescue schemes are deployed.
At present the expectation is that the final text will include the last resort reference, said a diplomatic source. To take effect under the simplified revision procedure, the amendment must be ratified by each of the 27 member states in accordance with national procedures.
German chancellor Angela Merkel pressed EU leaders to accept treaty change as she fears Germany’s powerful constitutional court will take issue with the €750 billion temporary fund which is being used in the €85 billion rescue of Ireland by the EU and the IMF.
Other leaders, among them Taoiseach Brian Cowen, were reluctant to follow Dr Merkel because they feared that any move to revise the treaty would open the floodgates to competing claims for other changes.
While the chancellor prevailed, her counterparts agreed to examine treaty change on the basis that the move would not lead to a referendum in Ireland or any other member state.
There is no provision in the Lisbon pact for sovereign rescues and the treaty still includes the “no-bailout clause”, which dates back to the origins of monetary union.
While the EU authorities insist the rescue of Greece and the creation of the €750 billion fund do not infringe this clause, Dr Merkel fears the German constitutional court may take a different view.