Kenny refuses to be drawn on referendum

Taoiseach Enda Kenny has declined to say whether or not a referendum will be required to ratify the new intergovernmental treaty…

Taoiseach Enda Kenny has declined to say whether or not a referendum will be required to ratify the new intergovernmental treaty involving as many as 26 of the 27 EU States.

Speaking after the conclusion of the summit of EU leaders in Brussels today, Mr Kenny would not be drawn on giving an opinion on the necessity of a referendum, or whether a treaty change would necessitate a sufficient transfer of competence from the State to trigger one.

"The matter [of a referendum] is one that a lot of countries will have to consider," he said. "The Attorney General [Maire Whelan] will give legal advice to the Government in due course on the issues of substance that are in the language [of the agreement].

"There is a great deal of technical and legal work that needs to be done. Ireland is not alone in that," he said.

Mr Kenny was speaking at a press briefing earlier this afternoon, soon after the Summit concluded.

Despite repeated questions on the possibility of a referendum, he said he would not give his view until a full legal parsing of the statement by the EU leaders had been completed, including its commitment to a new fiscal compact.

This will impose stricter rules on Governments to control budgetary deficits and will also involve new oversight roles for the European Court of Justice and for the European Commission.

"I would never presume to advise what the A-G will advise. I would like to see the final text analysed and dealt with properly," he said.

Mr Kenny appeared to adopt a more circumspect stance on a referendum than his Cabinet colleagues.

Earlier, Minister of State for European Affairs Lucinda Creighton said there was a 50-50 chance of a referendum on closer fiscal union between the 17 euro zone states. Tánaiste Eamon Gilmore, speaking in the Dail yesterday, had also raised the possibility that a public plebiscite might be necessary.

The Taoiseach did indicate, however, that the status of any treaty that emerged would be different from a full EU treaty. Such an intergovernmental treaty involving less than 27 member states might have a bearing on the Government's approach to the referendum issue.

Asked for reaction on the Britain's exclusion from the agreement, he said: "My preference was that meeting would have concluded with agreement of 27 leaders. That was not possible when David Cameron found himself unable to support the general principles laid down."

He said other members were disappointed that it was not possible to get unanimous agreement. He also said that some other countries – Hungary, Sweden, and the Czech Republic – had indicated they would need approval from their own parliaments.

Mr Kenny also said it was his view that the agreement had achieved its goal of protecting and defending economic stability in the euro zone area. He said the firewall and stabilisation elements included in the agreement – the acceleration of the enforcement of the ESM, the permanent bailout fund); access to bilateral loans from the IMF; and increased firepower for the temporary bailout fund, the ESFS – will secure and defend the stability of the euro zone.

Mr Kenny also said that corporation tax would remain a red line issue for Ireland. He also said that he had received a good hearing for his proposal that Ireland be allowed access new mechanisms to help ease debt repayments. He referred that to €63 billion of loans Ireland had taken out before the State entered the bailout at punitive interest
rates.

Mr Kenny has argued that some of the new mechanisms for paying back debt deployed within the EU since then should now be available to Ireland, including longer terms of maturity.

Speaking this morning, Ms Creighton the new pact would go a long way towards enhancing and strengthening the EFSF and the firepower that would be available to assist euro zone members. She said she hoped it would be enough to satisfy markets.

Ms Creighton said there had been no discussion about corporation tax, the rate of which the Government has pledged to defend, and that the subject “wasn’t an issue on the agenda at all”.

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Ms Creighton said the Government was keen to see more direct ECB involvement but that it was up to the bank and ECB president Mario Draghi to make up its own mind.

Asked if the pact was a further instance of Ireland surrendering sovereignty, Ms Creighton replied that “nothing” could compare to the sovereignty Ireland had surrendered last year and that the leaders were keen to “ensure we never see these problems with our currency again”.

The proposed deal was about coordinating rules and ensuring they are enforced, she said, adding that it was in the interests of the euro zone, Ireland and the wider European Union.