Merkel says result advances financial stability in Europe

REACTION:GERMAN CHANCELLOR Angela Merkel welcomed the referendum result, calling it "good news for Ireland and for Europe".

The outcome pushes on the creation of a permanent stability union in Europe, she said. But she warned that financial stability of the EU would not happen overnight. Irish voters demonstrated with their vote that they would continue carrying the “demanding” consolidation and reform programme.

“Considering the cuts and hardships this means for people, this earns particular acknowledgment and respect,” said Dr Merkel.

German finance minister Wolfgang Schäuble said the result was an important step to help anchor a culture of “sustainability and stability in the euro zone”.

“Ireland is implementing its aid programme decisively and successfully and is proof that the European strategy to tackle the crisis is correct and effective,” he said.

The positive reaction was echoed in the ruling Christian Democratic Union. Europe spokesman Gunther Krichbaum praised the Irish people for “wisely weighing up the issues”.

“This result is a signal that builds trust towards Ireland’s European partners and is a good sign of stability towards financial markets,” he said.

“Ireland was faster than Germany in this respect”, he added, in a nod to continued negotiations in Berlin between government and opposition over parliamentary ratification.

Opposition parties welcomed the vote, but said they would maintain pressure on Dr Merkel to agree additional growth measures in Europe before they threw their crucial support behind the treaty in the Bundestag.

Senior EU figures also welcomed Ireland’s approval of the treaty, with European Council president Herman Van Rompuy saying the referendum result was an important step on the road to recovery.

“With this vote, the Irish people have given their endorsement and commitment to European integration,” said Mr Van Rompuy.

European Commission president José Manuel Barroso said he conveyed his personal congratulations to Taoiseach Enda Kenny and added that the treaty was a key element of Europe’s response to the debt crisis.

“I know that many voiced their concerns about the need for growth during the campaign. The European Commission believes that stability and growth go together and that we cannot have one without the other,” said Mr Barroso. “Ireland has established a strong track record in implementing its EU-IMF financial programme. Today’s vote represents a significant step towards Ireland’s economic recovery and its place at the heart of the EU.”

Irish EU commissioner Máire Geoghegan-Quinn said the vote for the treaty was a strong statement of support for the creation of a more stable euro zone. International investors would now see Ireland as a safe bet, said Ms Geoghegan-Quinn, who holds the research, science and innovation portfolio.

“This will certainly speed up Ireland’s return to the financial markets and it will give us the same benefits as other signatories to the fiscal treaty,” she added. “Remaining an active and central member of the euro zone is very important for maintaining employment, creating new jobs and securing more investment into Ireland.”

President of the European Parliament Martin Schultz said the vote sent an important signal of Ireland’s commitment to the euro and the EU more generally.

“Yet, we must also listen to the concerns of those who voted No,” said Mr Schultz. “The Irish people and authorities have shown extraordinary capacity to deal with the difficult circumstances . . . [they] have had to endure a number of very tough years and they still have some difficult budgets ahead. They need to have some cause for hope for the future.”

French MEP Joseph Daul, chief of Fine Gael’s group in the European Parliament, said the vote marked a Yes to “debt reduction” for Ireland.

Mr Daul, parliamentary leader of the European People’s Party, said the Irish people had reaffirmed their commitment to a strong, unified Europe. “With a majority voting in favour of ratifying the treaty, they have said Yes to stability, Yes to debt reduction and Yes to economic growth.”