Home > Uncategorized > Taoiseach Rejects European Debt Conference Proposal of Syriza

Taoiseach Rejects European Debt Conference Proposal of Syriza

European Debt Conference-Taoiseach Reveals All!!!!

Taoiseach Kenny Reveals All on Debt Conference on RTE

Speaking on news At One on Sunday Feb 1 Taoiseach Kenny said:

Interviewer:Do you support the Syriza proposal for a European Debt Conference?

Kenny: Discussions on debt should continue to take place at the Eurozone Group where all Eurozone countries are represented

Ireland supported the Fiscal Treaty at the height of the recession (implied : and continues to support it)

The Key difference between a New European Debt Conference and discussions in the Eurozone Group of Countries is that the Eurozone Group of countries are all parties to the Fiscal Treaty and are bound by it.

In supporting the Debt Conference,the participants would be setting aside the unequal and discriminatory framework of the Fiscal Treaty. At a minimum participation in the Debt Conference proposed by Syriza would mean a willingness to renegotiate of the Fiscal Treaty.

Fiscal Treaty Requirements for Ireland—Austerity for Over Twenty Years!!! 

The Fiscal Compact requires that the current deficit be reduced below 3% of GDP by end of 2015, that the “structural deficit” be eliminated by 2018 and that the public debt to GDP ratio be reduced to 60% over 20 years thereafter. Despite the physical exit of the Troika from Dublin , the government is treaty bound to further reduce the current budget deficit in 2015  from 4.8% to 3% of GDP. There has been no recovery of national sovereignty.

The current budget deficit of Germany has been below 3% for a number of years. ” But although the German public deficit stayed within the EU limit of 3 percent of GDP for the third year in a row in 2013, it came down from a budget surplus of 0.1 percent in 2012.” http://www.dw.de/german-economic-growth-flat-in-2013-but-deficit-under-control/a-17362284

The EU has now quantified the budgetary position which would be required to eliminate  the Irish “structural deficit” in order to comply with the Fiscal Treaty. (EU Report on Ireland, March 2014)   The over-all deficit needs to be converted from -4.8 % of GDP in 2014  to +4.9% in 2018. Based on a GDP of 148 billion Euro in 2012, this requires a further 14 billion in cuts and tax rises unless there is significant economic growth.  Growth in GDP in 2013 was +0.2% , which means total stagnation as 0.2% is less than the probable error in the estimate. (After 2014, deficit =2.7%, hence further 11.25 billion in cuts/taxes now required to remove structural deficit by 2018)

Germany has no structural deficit.  http://ec.europa.eu/europe2020/pdf/nd/sp2013_germany_en.pdf

Under the Fiscal Treaty Irish government debt must be reduced (not rolled over) from 102% of GDP now to 60% of GDP over the next 20 years. This requires further significant expenditure cuts and tax rises into the distant future-AUSTERITY FOR TWENTY YEARS (Reduction of 77 Billion over 20 years if no growth—anywhere between 2 and 3.8 illion per year but even worse if there is a further Eurozone and/or Irish  recession)

German national debt to GDP ratio at 57% is already below the 60% figure in the Treaty as can be seen at this link .http://en.wikipedia.org/wiki/List_of_countries_by_public_debt

The Fiscal Treaty is merely a device to force the Programme Countries and other indebted countries to make huge repayments to the stronger countries led by Germany though all EU countries were responsible for the banking busts and European recession. A new economic colonialism has been established within Europe through the FISCAL TREATY

Eurozone countries whose net government Debt to GDP Ratios are in excess of 60% are:

Italy       103, Ireland     102, Spain    72,  Portugal   112, France      84,  Belgium   83, Greece    155

Other countries including Germany, Netherlands and Finland have ratios below the 60% figure set out in the Fiscal Treaty

 

 

 

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