The Euro crisis: The Fiscal Treaty – Consequences of a No vote

This paper forms part of a series of working papers on the euro crisis by leading Irish commentators.

The author, Paul Gallagher, former Attorney General of Ireland, argues that the issues presented by the Treaty are both simple and fundamental. They are simple because the Treaty in essence imposes a legal obligation on each Contracting State to adopt balanced budgets and to undertake to work jointly towards economic policy fostering the smooth functioning of the Economic and Monetary Union and economic growth. The Fiscal Treaty does not raise the myriad of complex and wide-ranging issues arising in previous referenda on proposed amendments to existing European Union or European Communities Treaties. The issues are fundamental because the consequences of a no vote would be catastrophic for Ireland, according to the author. This paper considers these consequences.