Analysis

Why we are advocating a NO vote on the Fiscal Treaty

The Workers Party are campaigning for a NO vote on May 31st because if passed this treaty will mean more of the economic misery and hardship that the Irish people and other Europeans have had to endure these last number of years. The policy of Austerity is not working and in fact is leading to further economic decline.This is recognised not just by socialist parties like the The Workers Party but by economists like Paul Krugman and newspapers like the Financial Times.  We have had more than 4 years of Austerity budgets which have increased unemployment, led to the return of emigration, pay cuts and loss of pensions, households in mortgage distress, the education and health service

18 months ago – 120,000 march against austerity. The Fiscal Treaty promises decades more of austerity.

budgets slashed and social welfare targeted for cutbacks.New taxes like the Household Charge and proposed Water Charges hit those most in need not those who can afford to pay more.

The proposed Treaty will decree that this is the only possible economic policy for any future government to follow.
It means a loss of our political and economic sovreignty and the transfer of powers to unaccountable and unelected bureaucrats in the European Commission and the European Court of Justice.
By imposing a 0.5% deficit rule it means that there will have to be a further 6b cuts in addition to those already to come in the 3 budgets to 2015.
That’s a good enough reason to say NO.
It is time to say Enough is Enough!
There is a better way, there are alternatives.
May 31st is the opportunity to fight back.

Reject the Austerity Treaty Vote NO.

The Workers Party believe that this treaty must be rejected by the Irish people. It represents bad law, bad economics and is an affront to democracy.

The tactics being used to persuade people into voting “yes” rely on fear, on a clear misrepresentation of reality, and on a bogyman ESM Treaty which does not even exist at this time.

This treaty with its triple lock of 0.5% limit for structural deficits; plus the injunction that budget deficits do not exceed 3% of their gross domestic product at market prices; and that government debt does not exceed, or is sufficiently declining towards, 60% of their gross domestic product at market prices will plunge Ireland (and possibly all of the EU) into a further spiral of economic contraction and prolonged recession.

The Workers Party believes that there is a viable alternative plan that preserves democracy, provides hope for citizens; and generates economic recovery.

Our recovery must be based on ending the ongoing cash-haemorrhage arising from the bank guarantee; on halting the collapse of the domestic economy; and on creating long term viable jobs which will replenish government income and simultaneously massively reduce the social welfare budget.

The government already has, or has ready access to, the tools that would facilitate these developments. Sadly what the government does not have is the political will to use these tools.

Utilise the EFSF

If the government has conceded that we will not be able to borrow on the international bond markets we have 14 months to go to the EFSF and receive the necessary funds there.

 Re-negotiate Debt

The bank bailout cost the Irish taxpayers about €70 billion. This is larger than the amount of money we have been loaned by the Troika. The present arrangement for the repayment of, for example, the Anglo promissory notes are unsustainable and must be either ended or completely renegotiated. An indefinite deferral (or indeed a cancellation) of the Anglo notes alone would free up €3.1 billion annually for the next decade.

Equalise our Tax system

Government economic policy which attacks the poorest in society and reduces their income depresses the domestic economy. Cutbacks will never balance the books. In a three part strategy we propose (i) a third income tax band of 50% for income over €120,000 per year (ii) A wealth tax at approx 0.6%, and (iii)An end to the legacy tax avoidance schemes which cost up to €7 bn annually and have minimal if any positive economic effect.

Develop our Commercial State Companies

We have already published a detailed plan demonstrating how our commercial state companies, which have historically been the backbone of economic growth and progress in Ireland, already employ 40,000 people in productive jobs. Working from the model of a State Holding Company these companies can access international banks for capital and should be focused on developing Ireland’s potential in green energy, new technologies, etc, thereby directly creating and fostering thousands of well paid and sustainable jobs and simultaneously boosting exports and foreign earnings.

Take control of our own natural resources

Oil and gas are finite resources, are vital to every modern economy; and are in scarce supply. Ireland has considerable supplies of oil and gas. Unfortunately our government insists on giving it all away for free to various multinational oil companies. This is national economic sabotage. Ireland should follow the example of Norway or Venezuela, both small countries on the edge of a continent, who have taken control of their petrochemical resources and who have, and are, building a modern economy on the back of those resources.