THERE IS a strong case on economic grounds to vote in favour of the Lisbon Treaty in the forthcoming referendum. Ireland’s economic success has depended in large part on its access to the huge European market and the opportunity membership of the EU gives to ensure we participate fully in governing and regulating it. A No vote would jeopardise that beneficial role just when economic uncertainties are multiplying at home and abroad. It is precisely now that we need to maintain goodwill and respect in Europe by voting in the treaty.
If it is defeated Ireland would be blamed for the resulting shock to the system, both politically and economically, whether we liked it or not. It would appear that we had rejected a painfully constructed compromise accepted by the other EU member states as the best available way to improve the EU’s effectiveness in an increasingly interdependent and turbulent world.
But, these are no reasons to vote Yes. We should make our own independent decision, as the only State in the EU to hold a referendum, without interference from the EU Commission, its President, or other member states.
A No victory would be a short-sighted decision, especially if it resulted from short-term tactical protest votes concerning issues in the World Trade Organisation talks best dealt with within that framework, or trade union negotiating rights which are more properly handled at national level. Inevitably it would be said that Ireland rejected the treaty just when economic transfers from Brussels are diminishing and we are gradually becoming a net contributor to the EU budget.
In these circumstances a No vote would have a definite negative impact on trading, investment and employment prospects. It would exacerbate existing uncertainties in the domestic economy, as growth slows, inflation increases and property prices decline in the middle of the social partnership negotiations. The question voters must ask is whether such consequences are a price worth paying to ensure the treaty is defeated.
From the economic point of view the treaty does not change a great deal in the existing beneficial governing arrangements. Euro zone management is streamlined, and the commission is given some extra powers to police budget deficits. Ireland’s sovereign right to keep the 12.5 per cent rate of corporation tax in place is protected by a right to veto any change affecting it at EU level.
The campaign by the Irish Farmers’ Association against the European Commission’s WTO negotiating position is short-sighted and ill-conceived. As an open trading economy Ireland has a real interest in a successful outcome to the Doha trade round. Trade in services is the most strongly growing sector, and many agricultural products, including dairy and biofuels, would benefit. The issue of whether the Government should accept mandatory recognition of collective bargaining, raised yesterday by Siptu, is best dealt with at national level, not used as a weapon against the treaty, the defeat of which would directly affect its members.