Mixed NI reaction to Eurozone snub

Published Friday, 09 December 2011
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Opinion is divided on how Northern Ireland will be impacted after Prime Minister David Cameron deployed the UK's veto, snubbing of a new pact designed to deal with Europe's financial crisis.

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    Analysis

At least 23 of the 27 EU member states 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 fiscal union deal was struck at a European summit in Brussels in the early hours of Friday morning - after 10 hours of fraught negotiation - in a bid to stabilise the Euro and solve the debt crisis.

It came after Mr Cameron refused to support an EU treaty change because it would not guarantee London's financial services the protection he demanded.

For years there has been talk of a two-speed Europe. Now it seems to have arrived.

UTV's Business Editor Jamie Delargy

A local economist told UTV he doesn't believe there will be a backlash against Northern Ireland.

"I don't really think that Northern Ireland stands to lose too much on this," University of Ulster economist, Mike Smyth says.

"Our capital in Brussels at the moment is very high. Brussels looks upon Northern Ireland as a success story in terms of the peace process and its own role in Northern Ireland, so this deal will not in any way impact on that."

Another EU watcher, who served for five years as head of the Commission offices in Belfast, is not so optimistic.

"I certainly don't think it will do the UK any good and it means Northern Ireland along with it," Jane Morrice, from the European Economic and Social Committee, said.

"I think that we've been teetering on the edge of European affairs for far too long and I do believe that this is certainly not going to be taken lightly by the other member states."

SDLP South Down MP Margaret Ritchie has also spoken out against Mr Cameron's veto.

She said: "In walking away from the deal on the table at Brussels, David Cameron may be satisfying the Eurosceptic mob in his own party, but he is not necessarily getting the best deal for the UK, much less for the North of Ireland.

"This move by the Prime Minister can only serve to harm our relationship with the EU and create a two-speed, two-tier Europe with those on the inside of the stabilisation deal sorting out the mess, and those on the outside, looking on," the former SDLP leader said.

But Mr Cameron has insisted that Britain will maintain influence in the European Union.

The membership is in our interests and I've always said if that's the case I'll support our membership. Membership of the European Union is good for us.

David Cameron

"Europe has many rooms. I think Britain should feel the Europe we want has got the flexibility of a network," Mr Cameron said.

"You've got to form alliances in Europe for the things you want to get done. I don't think anything that happened last night will change that, in fact it was relatively, there was obviously fundamental disagreement - a situation where Britain had to say it couldn't go ahead with this treaty - but it was done in a very good natured way."

Meanwhile, the Irish Government is getting legal advice on whether a referendum needs to be held on the new European deal.

Taoiseach Enda Kenny said its Attorney General Marie Whelan will have to forensically examine the deal struck in Brussels.

"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 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.

Mr Kenny was positive about the outcome of the meeting in Brussels.

"Ireland's economic security has been defended and protected," he said.

"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."

© UTV News
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14 Comments
Davy McFaul in South Derry wrote (165 days ago):
If you live in the North it doesn't matter what your views on the single European currency are as the politicos you didn't elect at at Westminster will make your decision for you with you having no say either way. And Euirosceptics in Westminister have the brass nock to complain abour the deomcratic defecit in Brussels?. @ Dave the UK didn't give a 'handout' to anyone, it was a loan designed to protect British export interests to Ireland and besides, as of November 2011 Ireland owes 104.5 billion Euro to Britain while Britain owes 113.5 billion Euro to Ireland so Britain are actually in Debt to Ireland.
JT in Antrim wrote (165 days ago):
This deal was being set up solely for the interests of Germany and France, not for the UK or Ireland. At least Cameron had the guts to say no. They thought he was bluffing and could bully the UK into the deal.
Keith in Ireland wrote (166 days ago):
@Dave: That wasn't a handout. It's called a loan. You'll get it back with interest. You'll also find that it's impossible to have an economy without such loans. Debt is the only real currency.
george in omagh wrote (166 days ago):
ms.richie never says much but she puts her foot in her mouth again and gets it wrong ,her prime minister didnt get what he wanted when he went out there so he didnt vote its as simple as that.
William in Belfast wrote (166 days ago):
I really can't understand why people are moaning about this......10% of GDP, 11% of tax income...£55 Billion!! To take a risk with those figures would be madness. Tory toffs, euroskeptics bla-dee blah blah! Let's hear all the moaners taking an 11% loss on their income, and just taking it on the chin. Cameron is right to have vetoed the treaty. I'd rather have backbone, then be spineless yellow back.
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