Ireland votes on Europe treaty
- 12 years ago
It's the third time in four years Ireland has voted on Europe but this is a first.
It's putting Europe's new fiscal treaty to the test.
The EU pact sets out strict rules for euro zone government spending. It also outlines who can receive bailouts and how.
Early polls point to an Irish yes - that would ease worries about the country's funding prospects and save Europe another headache.
Tom Vosa, of National Australia Bank, says Ireland begrudgingly accepts it may need to seek more funds from Europe.
(SOUNDBITE) (English) TOM VOSA, HEAD OF MARKET ECONOMICS, NATIONAL AUSTRALIA BANK, SAYING:
"If we get a no vote? Well then Ireland can't basically get funding from the ESM which replaces the EFSF from July this year, so if they do need additional funding, if markets remained closed, then they would have to come up with essentially another deal, they would certainly have to agree to live by the fiscal compact, so essentially the referendum choice perhaps goes by that stage."
Ireland attracted many foreign companies to Dublin by offering low corporation tax and a cheap workforce.
But like Spain a property boom in the mid 2000s led to a financial and banking crisis.
Dublin was given an 85 billion euro bailout by the EU and IMF in 2010.
Unlike Greece it dutifully accepted the austerity pill that went with it.
But now political chaos in Greece is threatening Ireland too.
Megan Greene is from Roubini Global Economics.
(SOUNDBITE) (English) MEGAN GREENE, ROUBINI GLOBAL ECONOMICS, SAYING:
"Ireland needs to think about it's position within Europe, especially as countries are going to be pulling out of the euro zone. And Ireland's entire growth model is reliant on multinational companies setting up their European headquarters in Dublin."
Four years ago Ireland shocked the rest of Europe by rejecting the Lisbon Treaty which was meant to bring the bloc closer together.
No rebellions are expected this time and this treaty isn't under threat - only 12 of the 17 euro zone members are needed to ratify it.
But a NO vote would worry investors.
Ireland's two-year borrowing costs rose above its 10 year bond yields for the first time in four months on fears of a rejection.
Ethan Bilby, Reuters
It's putting Europe's new fiscal treaty to the test.
The EU pact sets out strict rules for euro zone government spending. It also outlines who can receive bailouts and how.
Early polls point to an Irish yes - that would ease worries about the country's funding prospects and save Europe another headache.
Tom Vosa, of National Australia Bank, says Ireland begrudgingly accepts it may need to seek more funds from Europe.
(SOUNDBITE) (English) TOM VOSA, HEAD OF MARKET ECONOMICS, NATIONAL AUSTRALIA BANK, SAYING:
"If we get a no vote? Well then Ireland can't basically get funding from the ESM which replaces the EFSF from July this year, so if they do need additional funding, if markets remained closed, then they would have to come up with essentially another deal, they would certainly have to agree to live by the fiscal compact, so essentially the referendum choice perhaps goes by that stage."
Ireland attracted many foreign companies to Dublin by offering low corporation tax and a cheap workforce.
But like Spain a property boom in the mid 2000s led to a financial and banking crisis.
Dublin was given an 85 billion euro bailout by the EU and IMF in 2010.
Unlike Greece it dutifully accepted the austerity pill that went with it.
But now political chaos in Greece is threatening Ireland too.
Megan Greene is from Roubini Global Economics.
(SOUNDBITE) (English) MEGAN GREENE, ROUBINI GLOBAL ECONOMICS, SAYING:
"Ireland needs to think about it's position within Europe, especially as countries are going to be pulling out of the euro zone. And Ireland's entire growth model is reliant on multinational companies setting up their European headquarters in Dublin."
Four years ago Ireland shocked the rest of Europe by rejecting the Lisbon Treaty which was meant to bring the bloc closer together.
No rebellions are expected this time and this treaty isn't under threat - only 12 of the 17 euro zone members are needed to ratify it.
But a NO vote would worry investors.
Ireland's two-year borrowing costs rose above its 10 year bond yields for the first time in four months on fears of a rejection.
Ethan Bilby, Reuters