Stephen Donnelly (Independent TD) was on Vincent Brownes show on TV3 on Wed 01 Feb 2012 and summed up what the new EU “fiscal compact” Treaty would mean to Ireland.

To put in context he states that austerity has only ever worked once by England(in industrial revolution) in the last 200 years.

Hear is what we are talking about. To pay down €100 billion in 20 years(i.e. get GDP to level required in treaty). You got to pay down €5 billion a year. Thats what the treaty says.

We’re also paying about €8 billion in interest on the €200 billion that we owe. So you add the two together, our interest payment and our capital payment on the debt is €13 billion per year.

Thats more than the total amount of income tax we take. So hears what we would have to believe:

That a government, not just this government, any government  in the world can turn around and say,

YOU have the MOST INDEBTED PEOPLE ON EARTH,

YOU have no income tax,

YOU are not allowed to raise income tax to invest in your economy because that goes to paying back the debt,

YOU are not allowed to raise Corporation Tax above 12.5%, 1/3 of what it is in other european countries because then all the FDI(Foreign Direct Investment) will leave,

We are being asked to believe that the most indebted country on earth, without the ability to raise income tax, without the ability to raise Corporation tax, in the middle of a massive Global recession, can achieve levels of growth that no country on earth has ever achieved. Once we believe that we’re ok.

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