Gilmore says euro treaty not constitutional matter

PROVISIONS TO be introduced under the proposed European euro rescue deal are not matters that should be in the Constitution, Tánaiste Eamon Gilmore told an Oireachtas committee yesterday.

Mr Gilmore told the Joint Oireachtas Committee on EU Affairs the Constitution does a different job than constitutions in other European countries and was a framework for legislation.

He denied the Government was “negotiating to avoid a referendum” on the introduction of the Treaty on Stability, Co-Ordination and Governance in the Economic and Monetary Union. But he conceded that article 3.2 of the latest draft of the treaty, which the Government received last night, now contained the word “preferably” in relation to the incorporation of the treaty into member state constitutions, which it had not contained before.

“Ireland, in common with other countries, did seek to have the term preferably included in the text,” he said. Pressed by Sinn Féin Senator Kathyrn Reilly, he said the Constitution was not the appropriate place for the type of “strong legislative measures” included in the agreement. Mr Gilmore said negotiating to prevent a referendum would be “seriously wrong-headed”.

“Such an approach would be a grave disservice to Ireland’s interests and to our partners in the common currency,” he said.

The Government would await the advice of Attorney General Máire Whelan, in relation to a referendum when the treaty was finalised. “It is only when a final text is available that it will be possible to reach a view on what will be required,” he said.

The intergovernmental treaty, which is being negotiated by representatives of all EU members apart from Britain, is Europe’s latest attempt to ensure the stability of the euro and of European economies. The current draft, the fifth, allows the European Commission or another member state to take action at the European Court of Justice against another signatory if that country fails to adopt a balanced budget rule, with a penalty of up to 0.1 per cent of gross domestic product.

It also requires that member states have a balanced budget with a deficit not exceeding 0.5 per cent of gross domestic product as a “medium term objective”.

Ms Reilly described the deficit target as “a new and draconian measure” and questioned where it came from. Sinn Féin TD Tony McLoughlin said the “profound issues” included in the treaty should be put before the Irish people.

Mr Gilmore responded that it would not matter what words were in the draft, Sinn Féin would oppose it “because you’re opposed to everything”. If the draft treaty took effect tomorrow it would impose nothing more than had already been agreed with the EU-IMF or under the Stability and Growth Pact, he said.