Eamon Gilmore warns of second troika bailout if fiscal treaty rejected

Monday 21 May 2012 16.15
Yes and No sides clash over likely fallout of treaty
Yes and No sides clash over likely fallout of treaty

The Tánaiste has said it is more likely that Ireland would have to avail of another round of emergency funding from the troika if the fiscal treaty is rejected.

Eamon Gilmore’s comments were echoed by Minister for Jobs Richard Bruton, who said it is categorically clear that Ireland will not have access to emergency funding if the treaty is rejected.

Mr Bruton told The Week in Politics that it is there in "black and white" in the treaty.

Fianna Fáil's finance spokesman also said it is a real possibility that Ireland will have to avail of another round of emergency funding from the troika once the current programme runs out.

Michael McGrath said that while he hopes Ireland will not need another bailout, if the markets are charging too high an interest rate then the only source of funding will be from the European Stability Mechanism.

He said we can only access the ESM if we vote in favour of the treaty.

However, Sinn Féin’s Peadar Tobin has accused the Yes side of using fear tactics on the electorate and said there would be money available for Ireland if needed.

Mr Tobin said they are trying to tell the electorate that the sky will fall in if they vote No.

He added that the treaty would give the European Commission greater powers.

He said that his party believed that laws made closer to Ireland are better ones, and that the fiscal treaty would prevent this in areas of finance.

Elsewhere, businessman Declan Ganley, who is urging a No vote, dismissed Fine Gael claims that he is set to benefit financially if the treaty is rejected.

Mr Ganley said the Government was trying to distract voters from the real issues.

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