Rejection of EU treaty would isolate Ireland, warns Irish finance chief

Irish finance minister Brian Lenihan has warned thatrejection of the Lisbon treaty in his country’s referendum on 12June would be a "step into isolation for Ireland."

Speaking in Brussels on Wednesday, Lenihan said EU membership hadbrought “countless benefits” for Ireland and a No vote would damagethe Irish economy.

“We are the only member state to hold a referendum on thetreaty.

“We have an opportunity to demonstrate once again our strongcommitment to Europe, which has been of such enormous benefit toIreland, and our strong commitment to the principle of reform ofinstitutions to improve their efficiency and effectiveness.”

He said that ratification of the treaty would not affect Ireland'sneutrality and does not change any of the existing arrangements inrelation to taxation matters.

“A Yes vote to the treaty will ensure that Ireland remains at thecentre of a more effective and efficient EU.

“It is precisely this status that has brought us the high level offoreign direct investment that we have achieved thus far.

“I believe the single market will become even more important as wefocus on export led economic growth to compensate for thereadjustment of housing construction to more sustainable levels,”he said.

AmCham EU chairman John Vassallo said: “The treaty resembles anagreement that business has asked for in the past, providing moretransparency and accountability within Europe’s institutions aswell as assurances that all relevant stakeholders have a say in thelegislative process.

“Nowhere in the EU will the effects of this business-friendlytreaty be felt more than in Ireland.

Irish Socialist MEP Proinsias De Rossa was reported in the IrishTimes as saying that the treaty would safeguard and promote publicservices.

“The treaty makes considerable progress in the long-runningcampaign to achieve better protections for public services in thecontext of EU competition law,” said De Rossa.

“Lisbon gives us the legal and political instruments to guaranteethat the future of public services is safe, provided nationalgovernments support them at home, and help progress the initiativesnow possible with this treaty."

Irish MEP Brian Crowley welcomed the comments, saying, “I do notthink there will be a No vote but, if there is, the impact would beto create a dent of confidence in the EU, both in Ireland and therest of the EU, not least from a foreign investmentperspective.

“The treaty does not offer any grand vision of a single currency orsingle market but, rather, will equip the EU to deal with therule changes necessary to meet the challenges ofglobalisation.”

Lenihan was in Brussels for a meeting of EU finance ministersand also addressed the EU American Chamber of Commerce. It was hisfirst public international appearance as finance minister.

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