The Missing Section from the Fiscal Compact ….?

January 19, 2012



The proposed Fiscal Compact:

I think there’s a piece missing from my version of the draft. It should come after the following in the draft.



Should there not be also:



1. This Treaty shall be ratified by the Contracting Parties in accordance with their respective legal requirements. It will include a burden sharing structured agreement between contracting parties, the ECB and government of Ireland. A sum of ¢34 bn through ELA and promissory repayment mechanisms will be set to null and void. Instead this debt will be collateralised through the EFSF and later through the ESM to ensure the citizens of Ireland are not held legally responsible for the debt of Anglo and associated banks.

2. This Treaty shall further include clauses and amendments to be agreed as part of an overall restructuring agreement for Ireland’s debt based on ability to repay. These clauses and agreements on burden sharing will be put to the Irish people in a referendum; the support for these amendments and clauses requiring possible further burden sharing will include a decision to leave the euro currency if such conditionality is not accepted and such burden sharing losses are not to be freely accepted by all parties to the agreement.

end of draft.


Meanwhile the Irish government are in some confusion regarding the Draft. Enda Kenny has flagged in the Dail that it is not his intention to do anything regarding sending the draft to the Attorney General, developing a position on a possible referendum, until he gets advice from the next meeting of EMU leaders at the next summit, end of January, Jan 30. This might explain Leo Varadkar stating that he could not discuss the question of the Fiscal Compact as it had not been finalised. It would appear Kenny and Varadkar are both in the dark on the matter; they intend to keep the country in the dark on this as well.

So next meeting of the summiteers held to discuss the Fiscal Compact should be fun?

Sarkozy: ‘Have you examined the Fiscal Compact, Mr Kenny?’

Kenny: ‘No, I was waiting to get its final wording today from you and Angela?’

Merkel: ‘You did not examine the proposed Draft and put it to the Irish Attorney General for his opinion?’

Kenny: ‘No point, it isn’t the final wording.’

Merkel: ‘The journalists did not release it in the media for general discussion and further advice”

Kenny: ‘Now we don’t want to go upsetting people with referendums and complex decisions that even I can’t understand!’

Kenny: ‘Just go ahead and add in any final changes there. I’ll rubber stamp them.'(Winks at Merkel, who is appalled)

Sarkozy/Merkel in chorus:

‘Ooh la, la…….’

Uncomfortable, embarrassed laughter ensues…

You know what, folks, I’m not laughing!



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