A paper published by the bank today sets out the steps which will have to be taken by the present and future Governments in order to comply with the EU fiscal treaty.
It said that while fiscal targets remain on track to 2015, many uncertainties prevail, and budget adjustments will have to be made up to 2020 in order to meet EU targets.
“They project that we will have tough budgets until 2020, what the report doesn’t do is to actually give a figure as to what the level of that adjustment or cutback would mean”, she said
“But it leads us back to the thing we debated very vigorously in the course of the austerity treaty debate and that was to meet the requirements of this treaty you are looking art further cutbacks.”
OPINION:�THE EUROPEAN Central Bank and German constitutional court have calmed the waters in relation to the euro crisis for now. Such calm though will not persist for long unless very significant action is taken at a political level to deal with the longer-term issues that the crisis has thrown up.
In particular many EU treaty changes are very likely in the coming years.
It is opportune, therefore, to ask is Ireland ready to cope with such an eventuality. The answer in my opinion is in the negative. At the core of my concerns are the so-called Crotty (1987), McKenna (1995) and Coughlan (2000) Supreme Court judgments.
These judgments relate to when, if at all, a referendum on an EU treaty change should be held (Crotty) and then, once called, how it should be conducted (McKenna and Coughlan). It is the collective impact of these judgments that is so worrying if Ireland wants to remain part of the evolving project that is the euro zone.