In test for euro zone, Ireland votes on fiscal treaty

One “Vote No” sign strung up this week on the streets of Dublin pulled no punches — depicting Ireland as the bather in the famous “Jaws” movie poster, with a great white shark representing austerity surging up from the depths to take a fatal bite. Treaty foes gathered near the entrances to this city’s medieval Temple Bar district, some handing out beer coasters printed with anti-austerity slogans and begging their countrymen to “vote no to the treaty, and yes for Ireland.” Two middle-aged men — one in favor, one against — exchanged arguments in lilting brogues near stately Trinity College Dublin, drawing a crowd of noisy onlookers just as eager to throw in their two cents.

The Irish government, led by Prime Minister Enda Kenny, meanwhile, is heading a powerful “Vote Yes” campaign, arguing that rejection of the treaty would cast Ireland adrift in Europe, panic foreign investors and lock Dublin out of any future financial rescues. The door-to-door “Vote Yes” campaign, however, has been marked by abuse hurled at government ministers by austerity-weary Irish, with Kenny’s car egged by protesters in the northern county of Donegal.

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“You know, the Irish don’t want this treaty, but if we say yes, it will be because voters are scared and they’re being told this is the only way out,” said Michael Mannin, an unemployed project manager in the construction industry, which went bust after Ireland’s credit bubble burst in 2008. “The other reason is that we’re saddled with all this Catholic guilt that makes us Irish feel like we need to be punished for those good years we had before all this crisis stuff began.”

Vote is mandated

Nations linked by the new treaty — including Ireland, which won a hard-fought 20th-century war for independence from Britain — would lose at least part of their fiscal independence. They would have to advise E.U. officials before issuing new debt and face tough fines and orders to make fresh budget cuts should they exceed strict deficit limits.

Under Ireland’s constitution, the ceding of such powers requires a national vote — making this country of 4.5 million the only euro-zone member forced to put the treaty to the test at the ballot box. The most recent opinion polls show Thursday’s vote is up for grabs, with 39 percent in favor, 30 percent against and 31 percent undecided or inclined to stay home.

A rejection by Irish voters would not kill the treaty, which needs only 12 of the 17 nations that share the euro to ratify it in order for it to take effect. But a no vote in Ireland could deal the treaty a symbolically powerful blow, fueling even more opposition in countries such as France, where Hollande has insisted that it must be renegotiated to put more emphasis on growth. If the Irish do say no, a treaty provision would cut the country off from future bailouts, setting up a potential showdown with the E.U. late next year, by which time many analysts believe Ireland will require a second financial lifeline.

Nationalists’ advantage

Nevertheless, in a country with a history of rejecting E.U. treaties, the Irish referendum has become an easy springboard for nationalists — who, as they have in Greece, are successfully tapping into the anti-austerity sentiment.

Inside a standing-room-only meeting hall in downtown Dublin this week, Gerry Adams — head of Sinn Fein, long seen as the political wing of the Irish Republican Army — held court as the man of the hour. With Sinn Fein the only major party to oppose the treaty here, Adams has surged in voter surveys to the point where he is now the most popular politician in Ireland. At 37 percent, his approval ratings best even those of Kenny. And even if Irish voters approve the treaty, political analysts say, one side effect of the referendum could be a new era of strength for Sinn Fein.

After a stirring performance by an Irish folk singer, Adams offered up a speech that seemed to associate the “bureaucrats in Brussels” with Ireland’s former British occupiers.

“We need to seize the moment,” he said to thunderous applause. “If something is bad for your country, you need to say ‘no’ to it.”

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