Left-wing TDs want to ask the president to call a referendum, if the government fails to do so. (File pic)

President Michael D Higgins will be urged to take the unprecedented step of calling a referendum if the Irish Government rules against a vote on the new European treaty.

Amid claims Taoiseach Enda Kenny and his EU counterparts crafted the pact to avoid the electorate, 16 left-wing TDs vowed to lobby the former Labour man if a public vote is ruled out.

Under the never-before-used Article 27 of the constitution the president can call a referendum with enough support from the Dáil and the Seanad.

Independent TD Thomas Pringle, who is spearheading the challenge, said they will turn to the head of state if Attorney General Máire Whelan rules there is no legal requirement for a referendum.

“Article 27 says a third of the Dáil and the majority of the Seanad can petition the president not to sign an Act into law until a referendum has been held by the people,” said Mr Pringle.

The group, comprising 16 Independent and United Left Alliance TDs, will need 55 signatures from Dail members to carry the petition.

“If you look at the number of Independents, Sinn Féin and Fianna Fáil, we make up 52 TDs,” he said.

“But the constitutional requirement would be for 55 TDs to sign this petition, so we will be hoping for some Fine Gael or Labour TDs who, in the interest of democracy, will support our calls for a referendum.”

Mr Pringle wrote to all members of the Oireachtas today calling for their support and signatures for the Article 27 petition.

If agreed, the president will be required to consider the treaty with the help of the Council of State, which includes former presidents Mary Robinson and Mary McAleese, as well as the Taoiseach and Tánaiste Eamon Gilmore. But the final decision comes down to him alone.

According to the constitution, Mr Higgins will have to determine whether the treaty is of such national importance that it requires the will of the people.

Opposition leaders have reiterated their calls for a public vote on the fiscal compact, which will bring strict budgetary rules and penalise member states that breach them.

Fianna Fáil leader Micheal Martin said pushing the treaty through without a referendum would damage the people’s confidence in any future European Union initiatives.

“For the sake of rushing through this treaty, we could damage the possibility of ever again winning support for an EU initiative,” said Mr Martin.

“Given that this treaty commits us to a new major EU treaty in the next few years, this is an urgent concern.”

Sinn Féin accused the Taoiseach of hiding behind the Attorney General.

Donegal North East TD Pádraig Mac Lochlainn said the treaty was “a suicide pact” and the public should be given a voice.

“It’s clear that the people want to have their say on this matter,” he said.

A Red C Survey for the Sunday Business Post last week revealed that 72 per cent of the Irish public are in favour of a referendum.

Sinn Féin vice-president Mary Lou McDonald earlier challenged Mr Kenny over claims from a top European official that he allowed the compact to be drafted in such a way that the Attorney General would find no legal grounds to hold a public vote.

Mr Kenny said he had no idea about the allegation.

“If it is the case and that speculative report were true, does that not bely what we have been saying all the time, that Ireland had no say in the matter?” Mr Kenny said.

Meanwhile, Independent TD Mick Wallace shot down claims earlier this week by Transport Minister Leo Varadkar that the electorate would not understand the intricacies of the treaty well enough to make an informed decision in a referendum.

“The notion that the people are not clued in to what’s happening is not true,” said Mr Wallace.

“I’ve been amazed by the level of interest and the level of knowledge people have all over the country about this present crisis.”

People Before Profit TD Richard Boyd Barrett said it was insulting and undemocratic to imply that members of the public are not smart enough to have their say.

He also accused Mr Kenny of allowing Europe to strangle and crucify Ireland.

“If you won’t listen to the people then the people should come to the streets,” he added.

Independent TD Shane Ross criticised the Taoiseach’s claims that the treaty will stimulate growth.

“He says this is an austerity and stimulus programme,” said Mr Ross.

“If anybody can tell me how these two can be reconciled, I think they should be sent to heaven immediately.”

Enda Kenny arrives for an EU summit in Brussels. (Pic: AP Photo/Frank Augstein)

Some 25 EU nations have agreed upon a fiscal deal to bolster the euro by toughening the bloc’s budgetary rules.

The UK and the Czech Republic are the only two members that will not sign up to the German-inspired pact.

Under the compact, signatories are committed to bringing into legislation what European Council President Herman Van Rompuy has referred to as a “debt brake” or “golden rule”.

New voting rules and an automatic correction mechanism will enforce compliance more effectively. All member states except the UK and Czech Republic are to sign the deal at a meeting in March.

The treaty will come into effect once 12 members have ratified it.

Meanwhile, Taoiseach Enda Kenny has insisted the Government is not afraid to hold a referendum on the deal.

Mr Kenny made his comments as he and other European leaders have gathered for the summit.

“The Government has absolutely no fear of a referendum,” said Mr Kenny.

Mr Kenny said when finalised, the text would go before Ireland’s Attorney General Máire Whelan, who will determine whether a referendum will be required.

“When the text is finalised I will ask the Attorney General to present the Government with the Attorney General’s response as to whether the agreed text as finalised by the politicians is in compliance with our constitution,” he said.

“If it is in compliance, then there is no need for a referendum.”

Mr Kenny’s Fine Gael colleague Leo Varadkar sparked controversy over the weekend when he said he had concerns for a possible referendum.

The Transport Minister said he was not a fan of the system – which gives the public a say on significant political issues – saying he believed it to be undemocratic.

“I don’t think referendums are very democratic,” Mr Varadkar told RTÉ.

“By and large, referendum campaigns are never about what they are supposed to be about.”

He said the main issues behind referendums get clouded by domestic political point scoring.

A new Red C Survey for the Sunday Business Post showed that 72 per cent of the population is in favour of holding a referendum.

Some 40 per cent said they would vote in favour of the fiscal compact, 36 per cent said they would vote no and the rest were unsure.

With Staff Writer

The Taoiseach will attend a leaders' summit on January 30. (File pic)

A decision on a referendum to toughen budgetary rules across the European Union will not be made until after a leaders’ summit on January 30, it has been revealed.

Taoiseach Enda Kenny said a final draft on a proposed treaty to try to ease the euro crisis and create a new fiscal pact is expected to be drawn up tomorrow.

Attorney General Máire Whelan will be asked for advice on whether the document should go to a national vote if it is signed off by the European heads of government, Mr Kenny added.

“As Taoiseach and as leader of the Government, I’m not in a position to actually ask for formal legal advice from the Attorney General here until the politicians and the political process at heads of government level have dealt with the draft,” he said.

“Tomorrow I would expect that there would be a conclusion at the technical level of a draft text.

“But if it’s a requirement that this country has to have a referendum, then that’s what will happen.”

The Taoiseach also dismissed reports that he would indicate at the January European leaders’ summit whether Ireland would hold a referendum.

Michael Noonan, Finance Minister, meets his German counterpart, Wolfgang Schauble, for talks in Berlin today.

Micheal Martin, Fianna Fáil leader, claimed the Taoiseach was speaking in riddles.

“I do not believe you Taoiseach when you say you do not have an idea about the legal implications of this treaty,” he said.

Gerry Adams, Sinn Féin president, attacked plans for the treaty.

“The Taoiseach has said that his objective is to be the Taoiseach who retrieves Ireland’s economic sovereignty,” he said.

“This treaty is actually at odds with this objective.”

Earlier, Transport Minister Leo Varadkar said it was unclear whether voters would have a referendum on new arrangements on the euro region’s fiscal rules.

“There’s only one reason why you have a referendum and that’s where there is a requirement to change the constitution,” the minister told RTE Radio.

“It’s not clear at all that that is going to be the case with this fiscal treaty.”

Mr Varadkar added: “I don’t particularly like referendums.”

Finance Minister Michael Noonan. (File Pic)

Finance Minister Michael Noonan has said an Irish referendum on European treaty changes would effectively be a vote on membership.

Eurozone members struck a fiscal union deal aimed at solving the debt crisis and saving the euro, but it requires a European Union treaty change.

To approve such a change to Ireland’s constitution, the decision may have to go to a public vote.

“If a referendum is necessary we won’t resign from it,” said Mr Noonan.

“We will campaign very strongly in favour of it. We will explain to the people what the issues are.

“It comes down to a very simple issue – if we want to continue in the euro or not.

“When faced with that question I think the Irish people will pass such a referendum.”

The deal was struck by all eurozone states, with the exception of Britain, at a key summit in Brussels last week.

Ireland’s Attorney General Máire Whelan will have to forensically examine the deal to determine whether a referendum is legally required.

The union will mean stricter budget and debt rules imposed upon states and penalties for those who breach them.

“The situation in Ireland is at once simple and complicated at the same time,” Mr Noonan told Bloomberg.

“If it requires a change in our constitution we will need a referendum. Other European countries can change their constitution by weight of a majority in parliament.

“We can’t do that in Ireland. It must go to the people.”

The Finance Minister met with UK Chancellor George Osborne to discuss the summit, in which Prime Minister David Cameron was the only leader of all 27 states to vote against forming a fiscal union.

He said he could not support it because its terms failed to guarantee London’s financial services the protection he demanded.

Despite this, Mr Noonan said the UK would remain a close friend of Ireland’s.

“I would simply say that it was a pity that what was agreed last week in Brussels did not enjoy the support of all 27 EU member states,” he went on.

“Whatever about that particular debate – which is a matter for the Government here in London – my focus and most people’s was on the more immediate elements to the package agreed by EU leaders last week.”

:: Report card

Meanwhile, the European Commission has claimed Ireland is on target with the implementation of its EU/IMF programme.

The commission welcomed last week’s Budget in which the Finance Minister and Public Expenditure Minister made a €3.8 billion adjustment.

But it lowered its growth forecast for next year from 1.9 per cent to one per cent, saying the near-term economic outlook had worsened on a global scale.

Fianna Fáil finance spokesman Michael McGrath has accused Mr Noonan of trying to scare the Irish people into voting in favour of the treaty changes, should a referendum arise.

Mr McGrath said the Finance Minister’s comments on whether Ireland should remain in the euro were highly irresponsible because that issue was not discussed in Brussels last week.

“We don’t know yet whether we require a referendum,” said Mr McGrath.

“Secondly, if there is a referendum, we don’t know exactly what the question is. The question will not be whether or not Ireland wishes to remain in the euro because that is not what was discussed.”

He said the question would concern deeper fiscal integration, not Ireland’s future with the euro.

“If a referendum is required, they will try to scare the living daylights out of people and tell them it’s a question of whether or not we want to remain in the euro and that is simply not the case,” Mr McGrath added.

Sinn Féin TD Padraig MacLochlainn agreed, accusing the Government of scaremongering for a yes vote in the potential referendum.

“In Lisbon they were told ‘Vote yes to Lisbon, vote yes to jobs’.

“This Government, like the last , believes that it can lie, bribe and blackmail its way to a referendum win. It is an insult to the public,” said Mr MacLochlainn.

Mr Varadkar said events will overtake the EU in coming weeks.

The European summit deal alone will not be enough to resolve the deepening debt crisis, an Irish government minister has claimed.

Leo Varadkar, Fine Gael transport minister in Dublin’s coalition cabinet, also warned events would likely overtake leaders in the coming weeks.

Demanding the European Commission seize more control, Mr Varadkar said a push, particularly by France, towards an “intergovernmental union” was not in Ireland’s interests.

“I suspect events will overtake us over the next few weeks,” he told national broadcaster RTÉ Radio One

“Fiscal co-ordination is a good idea, and it’s good that’s happening, but it’s not going to be enough to solve the problem that we have.”

Mr Varadkar said the European Commission had been “downgraded” since the Lisbon Treaty.

He also called for the European Central Bank to take on a different role in the crisis.

Separately, Tánaiste Eamon Gilmore said he would be surprised if Britain was not involved in talks about greater fiscal union across Europe in the coming months.

Mr Gilmore, also foreign affairs minister, said Britain’s isolation was not in the interests of Ireland, and discussions would take place between London and Dublin on the pact.

The deal struck in Brussels last Friday, involving 26 of the European Union’s 27 countries, is to be debated in the Dáil next week.

But Mr Gilmore said it was too early at this stage to determine if it would require a referendum.

The Tánaiste said conclusive legal opinion on whether or not to put the deal to the electorate was needed after the full details of the agreement are pored over in the coming weeks. “If it requires a referendum then we will have a referendum,” he said.

But he added that the deal was an international agreement, which he stressed was different to an amendment to European treaties, which in the past have necessitated referendums.

Mr Varakar said the UK’s decision to veto the EU deal was disappointing.

The Taoiseach has asked Ireland's AG to review the plans. (File pic)

The Irish Government is getting legal advice on whether the country needs a referendum on a new European treaty as part of a plan aimed at solving the debt crisis and saving the euro.

Taoiseach Enda Kenny said  Attorney General Máire Whelan will have to forensically examine a fiscal union deal struck at a European summit.

At least 23 of the 27 European states, with the exception of Britain, are expected to form a new Fiscal Stability Union, which would mean stricter budget and debt rules and penalties for those who breach them.

“The first thing is that once the text has been approved and agreed every country has to do its own thing,” said Mr Kenny in Brussels.

“In our case the Attorney General will have to analyse that, forensically examine it and give official and formal information and advice to the Government as to whether a referendum is required or not.”

“Obviously I wouldn’t speculate on that because I’m not confident to do so,” he added.

The summit was initially expected to result in an EU treaty change, but British Prime Minister David Cameron refused to support it because it would not guarantee London’s financial services the protection he demanded.

However Mr Kenny was positive about the outcome of the meeting of Europe’s top leaders, saying firewalls had been established to help prevent contagion of the crisis.

“Ireland’s economic security has been defended and protected,” said Mr Kenny.

“A great deal of useful work was done in respect of putting firewalls to prevent contagion and the substance of this has now been agreed and requires to be checked and analysed by each individual country.

“Specifically in Ireland’s case, I raised the exceptional difficulty that Ireland’s gone through in having to borrow very extensively prior to the bailout for bank recapitalisation and the challenges that faces for us and I placed that firmly on the table.”

Earlier, Ireland’s Minister for European Affairs Lucinda Creighton insisted that increasing the Irish corporation tax was not addressed during the summit despite French President Nicolas Sarkozy’s previous calls to end unfair taxes across the eurozone.

She said hiking the controversially low rate of 12.5 per cent was never on the table to begin with.

“”There never was any intention of having a discussion around corporation tax,” said Ms Creighton.

“It wasn’t an issue that was on the agenda at all.”

She said discussions focused on safeguarding countries from contagion and strengthening the euro.

“(They were) very much focused on strengthening mechanisms of economic governance and engagement between member states in relation to the currency,” Ms Creighton said.

“And focusing on the so-called stabilisation – this firewall which we’ve been indicating for quite some time – there were some very significant steps there and we’re very hopeful they will make an important impact in terms of ensuring there won’t be further contagion within the eurozone from Greece.”

Minister Noonan leaving Finance's HQ last week (Pic: Niall Carson/PA Wire)

Irish Finance Minister Michael Noonan has claimed he will bring reality to the debate on the country’s corporation tax rates.

At a meeting of his Eurozone counterparts in Brussels, Mr Noonan said that other European states pushing for a hike on levies on company profits are imposing lower charges than Ireland.

“On the margins I’ll be making comment and trying to inform colleagues of what the real situation is,” the Minister said.

Mr Noonan cited a World Bank report on 185 nations which put Ireland’s effective corporation tax rate at 11.9 per cent with the statutory figure 12.5 per cent. He said this was one of the smallest differentials when compared to the rest of Europe.

“Many of the European countries, including France, have a much lower effective rate than that,” he claimed.

“If the debate is to continue I’ll be pushing that it takes into account the effective rates and not the nominal rates because no-one pays the nominal rates as far as I can see.”

Last week Mr Noonan claimed the effective rate in France could be as low as 8.1 per cent as tensions on taxes deepened between the two states.

The Government insists its 12.5 per cent corporation rate is non-negotiable as it continues efforts to secure a cut in the amount of interest being paid for the International Monetary Fund and European Union bailout deal.

French President Nicolas Sarkozy has been one of the most vocal critics of the Irish corporation tax rate and has claimed that an increase in the levy should go hand-in-hand with a cut to the interest rate.

Mr Noonan was meeting EU counterparts ahead of a leaders’ summit which Taoiseach Enda Kenny will attend at the end of the week.

The minister also warned that Irish banks are expected to need more than the €10 billion of capital set out in the IMF-EU deal.

He said results of stress tests on the state of the banks should be known by the end of March.

Ireland will have its first formal review of the €85 billion international bailout deal next month.

Meanwhile, the European Commission has launched proposals for a common consolidated corporate tax base (CCCTB).

The plans would see a system of calculating the taxable income of businesses in the EU, allowing companies to avoid the cost of complying with different tax rules in the EU’s 27 member states.

The Taoiseach opposes a CCCTB, describing it as tax harmonisation by the back door and thereby threatening Ireland’s 12.5 per cent rate.

PA

Ireland is now one of the PIIGS of Europe. Along with Portugal, Italy, Greece and Spain, Ireland is in danger of defaulting on its borrowings, we are told.

Together, these embattled countries have been dubbed the PIIGS of Europe. Their economic woes have presented an enormous challenge to the Eurozone up to last week when the European Union announced a massive confidence-building move to provide emergency funding to boost the EU.

In terms of foreign exchange, the euro remains unloved in the markets which has precipitated an all time low against, for instance, the Aussie dollar.

But for those of us unfamiliar with the intricacies of international economics, the endless dialogue about bailouts and bonds and billions can bamboozle.

At the heart of it, however, is what most of us with a connection to Ireland are wondering what this means for Ireland.

At the beginning of the month we witnessed the almost ludicrous scenario where Ireland – struggling to pay teachers and nurses and police – had to stump up €1.3m to help Greece as part of a Eurozone relief package.

Ireland’s Minister for Finance Brian Lenihan described the funding as “money well spent” arguing that the decision “will help safeguard the stability of the euro area as a whole and this stability will benefit all eurozone member states”.

Mr Lenihan knows better than anyone that Ireland too may have to drink from the well of European goodwill should economic conditions continue to decline.

Many believe that Ireland’s day of economic reckoning is not far away.

Respected economist David McWilliams believes that the bailout of Greece has little to do with solidarity with the hapless Greeks but “a bailout for the banks that lent money to Greece”.

“What has been dressed up as a sovereign bailout with an appeal to our sense of European solidarity is nothing more that a direct transfer of money from you [the Irish taxpayer] to the foreign creditors of French and German banks.”

McWilliams believes that Ireland’s bailout of the banks, yet to be fully realised, puts the country in a perilous position.

“We speak English. We have Google, Intel, Microsoft and Facebook’s headquarters here and we spin a better yarn. But we’re actually in exactly the same position – if not worse – than Greece,” he remarked recently.

Commentator Fintan O’Toole, writing in The Irish Times, recently claimed that Irish people were now living in a state of “feudal servitude”.

He summed up the financial mess thus: “There are 1.9 million people at work in the Irish economy. Their average earnings last year were €36,300. After tax, that’s €29,500 each.

From this, each one will stump up an average of €4,600 just to pay the interest on the money the State is borrowing to fund the bank bailout.”

O’Toole, who has two sons in their 20s, conceded: “I am trying to find one compelling reason for them to stay here.”

Morgan Kelly, a professor of economics at UCD who was one of the first to predict Ireland’s economic collapse, is even more pessimistic.

“In effect,” he wrote recently, “Ireland is at the start of an enormous, unplanned social experiment on how rising unemployment affects crime, domestic violence, drug abuse, suicide and a litany of other social pathologies.

“Mass mortgage defaults caused by unemployment and falling house prices are the next act of the Irish economic tragedy.

“As well as bankrupting our worthless banks all over again, the human cost of tens of thousands of families losing their homes will be enormous,” he says.

Even if these three commentators are half right, the prospect of Ireland shedding its economic woes looks tragically remote.

editor@irishecho.com.au