Labour Party leader Eamon Gilmore said today any renegotiation of the terms of the EU-IMF bailout should only happen on the basis of a mandate given by the people in the forthcoming general election.
Fine Gael sources said yesterday it was “seriously considering” drawing up an amendment that, if adopted, would enshrine a “debt brake” clause in the Irish constitution if it would lead to a lower interest rate on the EU-IMF bailout.
Such a clause would bar budget deficits above a certain threshold. It would place considerable additional pressure on Governments to cut spending and/or raise taxes if the stability of the public finances appeared to be at risk.
Party leader Enda Kenny and finance spokesman Michael Noonan met European Commission president José Manuel Barroso today and where they raised the reopening of the terms of the loans.
But Mr Gilmore said today he believed any attempt to renegotiate the EU-IMF deal can only be done on the basis of a mandate given by the electorate.
"The negotiation has to be on the basis of a mandate given by the people and the Labour Party is going to be asking every single voter in this country to give the Labour Party the mandate to renegotiate that deal,” he said during a visit to Cork.
Mr Gilmore stopped short of saying that he believed the Fine Gael move was premature. "The Labour Party has been in contact with our own colleagues in the European Union and we have no quibble with that. But let's be clear - the renegotiation of the deal can only take place after the election and after a mandate has been given to a new government to renegotiate."
Mr Gilmore was adamant the Irish constitution should not be amended in order to satisfy the suggestions of others, such as German chancellor Angela Merkel, who hinted countries introducing debt brake clauses could receive more favourable lending terms
"I think the Irish constitution is a matter for the Irish people - I think that other member states of the European Union have no business telling the Irish people what should or shouldn't be put in our constitution,” he said.
"I've seen the suggestions that have been made by the German chancellor in relation to that but let's be clear on this - the Labour Party has no intention of negotiating the Irish Constitution, what we will negotiate is the deal that was made which is a bad deal which is crippling interest rates attached to it, which is a bad arrangement with regard to the relationship between the banks and the states and which does not provide for an investment strategy for the country.”
Tonight other political parties criticised Mr Kenny’s trip to Brussels.
Sinn Féin president Gerry Adams described the visit as “little more than an election stunt.”
He said Mr Kenny would have had a “stronger hand” had he not supported the Finance Bill in the Dáil.
“It is clear to Sinn Féin and to a growing number leading economists that the Irish taxpayer simply cannot afford to shoulder the burden of bank debt,” he added.
Fianna Fáil’s Darragh O'Brien said the visit to Brussels presented Mr Kenny as “a leader without exposing him to a real debate over his policies.”
"Today he [Mr Kenny] will be on planes for twice the time it would take to hold proper, accountable debates about the plans for Ireland's future.
“The more he chooses PR stunts over debate the more people will draw their own conclusions," he added.