by Ray Fleming
The result of last week's Irish referendum on the eurozone's new fiscal compact was understandably rather lost in the weekend's Jubilee celebratory mood in the British media. The outcome was nonetheless worth a mention; on a low 50 per cent turn-out, some 60 per cent supported the changes with just over 40 per cent against it. A Dublin wit quickly interpreted this for the headlines as: Rock 58 per cent, Hard Place 42 per cent.
The low turn-out was probably because the electorate knew that even if it rejected the new fiscal disciplines in the eurozone they would still take effect because the necessary twelve of the seventeen eurozone countries have already endorsed them. Still, Angela Merkel's warm response to the result, Good news for Ireland and for Europe showed its importance to her and others who believe that French talk about the priority of growth is premature. The Irish vote is interesting also because many features of its economic crisis in 2008 caused by the bursting of its housing bubble are similar to the problems Spain has been facing for the past few years. After initial resistance the Irish government and people accepted the need for financial help from the EU and the International Monetary Fund and, although the consequences have been even tougher than expected there are some early and welcome signs of recovery.