FINE GAEL MEETING:THE "PSYCHOLOGICAL freight" of Ireland voting No in the Lisbon Treaty referendum would deter future financial investment, according to Prof Brian Lucey of Trinity College Dublin's school of business.
Prof Lucey was speaking at a Fine Gael-organised public meeting on the treaty in Dublin, where he described himself as “the ultimate floating voter”.
He said the treaty involved “a technical set of amendments, housekeeping changes, tidying up loose bits and pieces”, and was not a blueprint for a new European army or the suppression of workers’ rights.
“But these things have psychological freight.
“And the psychological freight of Ireland saying No to Europe a second time – that’s how it will be spun and that’s how it will be – will be that we will become that much less a place where people want to invest.”
Prof Lucey said in the short term this would manifest itself in higher interest rates.
“We are already seeing financial services companies pulling out of Ireland because they feel that we’re not really part of Europe and that we’re slipping into dangerous waters.”
Prof Lucey said Ireland was currently seen by international bond traders as being less creditworthy than Peru.
“We’re in the market for a lot of funds over the next number of years. The figures are staggering. We’re looking for potentially €150 billion to €200 billion in the international markets over the next couple of years, and they don’t have to give it to us,” he said.
“Right now we’re seen as being less creditworthy than Peru.
“Peru, of course, has natural gas, oil and literally mountains of gold. But they can give it to Peru or they can give it to Ireland.”
Fine Gael leader Enda Kenny told the meeting that a No to the Lisbon Treaty was a no to jobs.
He said Ireland’s membership of the European Union had been crucial in persuading foreign direct investment into Ireland.
Without EU membership the recession of the 1980s would have been worse, and recovery much slower.
“It has become a cliche to suggest that the only difference between Ireland and Iceland is one letter. Actually the difference is two letters: E and U,” Mr Kenny said.
Fine Gael MEP for Dublin Gay Mitchell said a No vote would reduce international confidence in Ireland, add to concerns about the economy and lead to an increase in the cost of borrowing.
Mr Mitchell said Ireland had never had as much influence in an international organisation as it had in the European Union.
“It would be insane to put this in jeopardy,” he said.
A No vote would push Ireland closer to Britain and European sceptics, he claimed.
“We have nothing to gain by pursuing the interests of British sceptics.”
Mr Mitchell said people who were considering voting No should be aware of the potential cost to Ireland of doing so.
“A No vote would bring with it consequences that we should fear, and which we should be aware of before we make our decision.
“It is time for those who have knowledge of what we should fear to be heard so that the people are aware not only of the objectives of the treaty but also of the consequences of a Yes vote and a No vote.”
The party’s finance spokesman, Richard Bruton, said Ireland’s economic recovery would not be helped if the Irish people retreated from a “carefully-designed deal, crafted to reinforce co-operation, which has been approved by every EU government and every EU parliament”.
Mr Bruton said there was nothing in the treaty that would damage Ireland.