A No vote in the Lisbon referendum will be interpreted by financial markets as Ireland voting against its own economic interests, Minister for Finance Brian Lenihan has warned.
At a press briefing on the Lisbon Treaty in Dublin this afternoon, Mr Lenihan said the European Union had provided a lifeline to the country’s financial system during the current crisis.
He said that without the support of the European Central Bank “not only would have our financial system have collapsed but it would have been impossible to repair it and put a proposal like Nama [National Asset Management Agency] forward”.
Those on the No side who claimed that, irrespective of the Lisbon vote, funding would still be available “ignored the crucial issue of goodwill and the importance of goodwill to Ireland at the European Central Bank and also in financial markets,” he said.
Confidence and goodwill were "impalpable things" and difficult to estimate but they were important issues in this campaign, he said.
The Nama proposal to swap bonds for cash was an example of EU goodwill and of the "tangible support" that existed for Ireland in Brussels.
Noting that one Dublin investment firm predicted a widening in Government bond spreads if the country voted No, Mr Lenihan warned financial markets would not understand how Ireland could vote against its own economic interests if the treaty was rejected.
"The harsh fact was that a No vote would shatter international confidence in the country’s ability to confront the financial crisis," he said.
He said No campaigners repeatedly argued that Ireland’s position in the European Union would not be affected by the vote.
But this view ignored the fact that ministers who represent Irish interests at the various meetings in Europe “do so on the basis of goodwill and co-operating and working with other member states.”
A No vote would damage the hand of any Irish government in its dealings with Europe, that explained why the Opposition parties were so enthusiastic in their support for the Lisbon Treaty, he said.
He also warned a rejection of the treaty would lead to a “disinterest” among policymakers in Brussels about conditions in Ireland.
The Minister claimed a Yes vote was crucial for a return to economic growth as “exports will drive future growth and the EU is by far our largest export market".
The Lisbon Treaty also made the achievement of full employment a legal objective of the EU, he said.
