Text of my Evening Herald column considering the consequences of the French & Greek election results for our forthcoming Stability Treaty Referendum vote
The EU political landscape has changed dramatically in the last 24 hours. The election of Francois Hollande in France and the defeat of the pro bailout parties in Greece will have repercussions far beyond the borders in both countries.
While both results will come as no great surprise to politicians who have been following the campaigns in France and Greece; it seems no one has given any serious thought as to what may now happen.
The focus of such thought, in so much as there has been any, has been on what Hollande might do to make good on his campaign promise to move the EU’s focus on to growth and investment.
There seems to have been very little thought as to what might happen in Greece. As recently as last week, pundits were citing polls that showed that up to two thirds of the Greek electorate accepted the need for a bailout.
Perhaps they did tell the pollsters that but, as we discovered last night, that sentiment did not transfer itself to the ballot box. The reality is that two thirds of Greek voters opted for anti bailout parties of various hues – from far left to far right, leaving the two pro bailout parties in tatters.
The net result, in the short to medium term, will be political stability that will make markets jumpy and herald problems for counties such as Spain and Italy when they go to the markets to borrow money.
The instability in the Eurozone that we thought had abated for a while looks like returning with a vengeance. M Hollande may not have time to set out his vision for a growth and investment plan for the EU – events may well overtake him.
Uncertainty may now be the name of the game in the EU and the Eurozone – yet the Government here seems to think that nothing that has happened in the last 24 hours has changed the mood music here.
To judge from Tánaiste Eamon Gilmore’s comments the coalition government here believes that the result there has no consequence for the Stability Treaty referendum. The Tánaiste was in Paris, in a signal of European Socialist grouping solidarity, with PES colleague M Hollande. This contrasts with the fickleness of the FG party chairman,Charlie Flanagan’s “Bon debarras (Good Riddance) Nicolas ! Bye Bye Sarkozy” tweet last night.
In Feb 2011 Fine Gael were championing their relations with Sarkozy, Merkel and the EPP – now they deny their former friends. You could almost hear the cock crow three times.
I am no fan of the Stability Treaty. Like others. I believe it is a missed opportunity. It fails to tackle the root cause of the problems in Ireland and Europe – a failed and dysfunctional banking system. But I am not convinced that voting it down brings us one millimetre closer to resolving our problems.
I am a reluctant Yes voter. I hope that passing it may give Germany the cover it needs to allow real reforms to the European Central Bank and the Euro architecture,
For that reason I want to give the Treaty every chance to gain public support. I do not believe that ploughing ahead with a vote on a Treaty that may yet be further reformed – or even improved – serves any purpose. I genuinely fear that going ahead against a background of uncertainty and volatility puts the outcome in doubt.
It is not that I think the combined forces of Sinn Féin and the ULA will convince the people to vote No, but rather that the public will opt not to endorse a Treaty that may be defunct within weeks of passing it.
This is not a new fear. I wrote about the imprudence of holding the vote this early on my website some weeks ago. While I know many would suggest that postponing the referendum sends out the signal that the Government is weak, I think that is better than landing itself with a no vote based on bad timing.
While the Tánaiste is technically right in saying that we wouldn’t need to come back and vote again if a growth package were eventually added to the Treaty – can he really justify putting only half the question to a vote? Would it not be wiser, and more democratic, to wait a few months and put a definitive position to the people?#
It would require more courage and leadership to postpone the referendum than proceed with it. This just may be the reason why it doesn’t happen
May 7th 2012