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WHAT WILL IT MEAN FOR IRELAND? It will mean stability. Just as your mortgage has to be protected by home insurance, Ireland will find it easier to reach full recovery if we are protected by the EU rescue fund. It will mean more investment for jobs. As the only English speaking country using the Euro, we are very attractive to companies that have recently invested here, like Paypal, Sky, Eli Lilly, HP, and Microsoft. These companies want to be in a stable country that uses the Euro – and that’s where we need to stay. It will mean that never again can a government nearly bankrupt the State through “giveaway” budgets for electoral gain – as has happened here twice in a generation. Never again can the Euro be dragged into a crisis by the instability of individual Member States.

WHAT DOES IT NOT MEAN FOR IRELAND?

It does NOT mean that we are locked into “austerity”. Money can be put away when there are surpluses, and higher deficits can be run when there are “exceptional circumstances”. It does NOT mean that our budgets and financial policies will be decided in Brussels or Berlin. EVERYONE agrees to abide by the same rules. We make our own decisions on how to adhere to those rules. It does NOT mean that we are locked into a completely rigid set of rules, with fines and condemnation if we do not reach them. The EU’s common sense approach to countries in difficulty has been far more flexible than those opposed to the treaty would admit to.

WHY SHOULD YOU VOTE FOR IT? •

A “Yes” vote protects the Euro in your pocket – it means more investment and less austerity. If we reject the Treaty, we may have problems funding ourselves. This could lead to extra cutbacks and tax hikes.

A “Yes” vote shows that we are a safe, stable place for Foreign Direct Investment and a committed, integral part of the European market.

A “Yes” vote will mean lower interest rates in the medium term for small businesses and home-owners, helping to stabilise property prices.

A “Yes” vote is essential, and it makes sense. It only “rubber-stamps” what we are already doing. We have already committed to balancing our books. All this does is formalise that commitment.

Pat Deering TD 16 Old Dublin Road, Carlow. P. 059 9173446 M. 087 9470736 F. 059 9164680 E. pat.deering@oireachtas.ie W. patdeering.ie

THE

STABILITY TREATY THE IRISH PEOPLE WILL SHORTLY BE ASKED TO RATIFY THE EUROPEAN STABILITY TREATY. IT IS IN OUR INTEREST TO APPROVE THE TREATY DOING SO WILL BUILD ON THE STEADY PROGRESS IRELAND HAS MADE IN THE PAST YEAR.

AN TAOISEACH, ENDA KENNY TD

Your Fine Gael Team

Minister Phil Hogan TD

John Paul Phelan TD

Senator Pat O’Neill

FOR FURTHER INFORMATION LOG ONTO

WWW.FINEGAEL.IE

Pat Deering TD 16 Old Dublin Road, Carlow. P. 059 9173446 M. 087 9470736 F. 059 9164680 E. pat.deering@oireachtas.ie W. patdeering.ie


WHAT DOES IT ASK COUNTRIES TO DO?

WHAT IS THE TREATY? •

It is a document aimed at providing stability, order and a “safety net” for the Eurozone countries.

It is an agreement between countries using the Euro (and most other EU countries) to stick to tighter budget rules.

In return, countries using the Euro promise to support each other through times of crisis using the €500 billion “European Stability Mechanism” rescue fund.

Like family members who promise to support each other through difficult times, it’s important that each family member respects that support by living within their means.

That’s because if one country incurs debts that they can’t pay, the others may have to step in to bail them out. And in the same way as Ireland will pay our own way, we expect other countries to do the same.

The Treaty offers protection to countries that follow the rules - like an insurance company that protects families against risks, but which also asks for the installation of smoke alarms and proper locks, to minimise those risks.

It asks countries to reduce their underlying Government deficit to no more than half of one percent of everything produced in that economy in that year (GDP).

It asks for countries to abide by a common set of rules, but there is flexibility in times of crisis. When the economy weakens, the Government can support spending and jobs by borrowing. And when the economy grows strongly, the Government repays public debts.

It also asks countries to bring, over a period of twenty years, their total Government debt (including money borrowed in previous years) down to safe levels (60% of the total output of the economy).

If countries are in “exceptional circumstances”, these rules are suspended and Governments can borrow more to support jobs and growth.

WHAT DOES IT NOT ASK COUNTRIES TO DO? •

It does NOT ask countries to give up their sovereignty. Countries will still draft their own budgets, and make their own decisions on tax and spending. The only difference is that all countries agree to abide by the same rules.

It does NOT ask countries to change their corporation tax, income tax or any other policies of this type. The rules that all countries abide by will be the same - how they get there is up to each individual state.

It does NOT ask countries to change existing arrangements. Our IMF/ECB/EU Programme has seen us commit to bringing our deficit down to under 3% of GDP by 2015. This does not change.


P Deering Stability Treaty Brochure