Leaders' deal is 'madness' - SF

EUROPEAN SUMMIT:SINN FÉIN has described the deal done by European leaders last week as "madness".

The party’s economic adviser Eoin Ó Broin said the agreement reached between 26 of the 27 member states does not address the fundamental issue of growth which is necessary to deal with the sovereign debt crisis.

Mr Ó Broin said Sinn Féin will demand a referendum on the deal because it will involve the further transfer of economic sovereignty to the European Commission.

He added that if the deal, as currently constituted, is put before the Irish people, Sinn Féin will campaign for a No vote.

He maintained the proposal to include a 0.5 per cent limit on structural deficits and a provision that no country other than Greece could restructure their debts would make it very difficult for Ireland to return to growth.

The 0.5 per cent borrowing limit was against the principle which allowed countries to borrow during a recession to stimulate the economy.

He said Sinn Féin was not against Ireland remaining in the euro although the party opposed it when it was originally proposed.

He said State and household debts meant withdrawal is “simply not an option in the short term”.

He maintained the outcome of the European summit was already being regarded as a failure because it will not stabilise the currency.

“It seeks to institutionalise policies of austerity at a member state level and give the European Courts of Justice and the European Commission more oversight,” he said.

He also warned that Ireland would continue to have austerity budgets past 2015 to reach the 0.5 per cent target.

“This 0.5 per cent level is extremely draconian. To have it written into member states’ constitution and laws means that essentially you are tying the hands of this Government and future governments to impose austerity budgets into perpetuity,” he said.