The new administration is facing both ways on the national finances, suggests John Bruton
The Fianna Fáil/Progre- ressive Democrat Pro- gramme for Government is completely contradictory on the issue of Europe.
On the one hand it acknowledges that Ireland has given a "sovereign commitment" to keep national finances in line with the EU Stability and Growth Pact. On the other hand, it says "fiscal policy" should remain the "preserve of national administrations".
These two statements cannot both be true. If fiscal policy must abide by an EU pact, then it is not solely the preserve "of national administrations".
The Taoiseach should remind himself of Articles 102a, 103 and 103a, of the EU treaties which he signed at Maastricht, and which solemnly and bindingly provide that "member states shall conduct their economic policies with a view to contributing to the objectives of the Community" . . . "member states shall regard their economic policies as a matter of common concern and shall co-ordinate them within the Council" (of EU Finance Ministers), and also that "where it is established that the economic policies of a member state are not consistent with the broad guidelines (adopted by the council) . . . the council may, acting as qualified majority on a recommendation by the Commission, make the necessary recommendations to the state in question", and furthermore, that a state not acting on these recommendations may be summoned to appear before the competent committee of the European Parliament.
These are all solemn treaty commitments entered into by Fianna Fáil ministers. They clearly demonstrate that fiscal policy is not the "preserve of national administrations", but is now something which, as Euro members, we share with the EU as a whole.
If the new Government intends to renege on or renegotiate these solemn treaty commitments on fiscal policy, they should say so publicly.
The FF/PD programme also criticises what it calls "support for a European superstate" using misleading and prejorative language borrowed directly from the British tabloids. It also condemns what it calls an "ambitious federal project" for Europe, ignoring the fact that, by any objective interpretation of the term, the EU already has a federal structure.
A Government that is facing two ways on Europe, will not be able to give the Irish people the honest lead they deserve on the vital issue of the Nice Treaty.
Membership of the euro does constrain our fiscal policy, and the reasons for this are obvious. A single currency can only be preserved from inflation if there is control on the volume of money being printed. A national government running large fiscal deficits is printing money. If it has its own currency, that is its privilege. But if it is part of a politically-agreed single currency, then it has to accept limits.
Fianna Fáil made a big contribution to the first No vote to Nice when it made a promise to hold a referendum on Partnership For Peace and then did not keep it. This was not honest.
If Fianna Fáil is to get a Yes vote the second time around it must be honest in everything it says about Europe. It made a bad start in the Programme for Government.
John Bruton is a Fine Gael TD for Meath and a former leader of the party