So, the Fiscal Stability Treaty has been put up for a vote to the citizens of Ireland. I’ve done a bit of research about the vote and a professor at Trinity said it was a “no brainer” (for yes). So what is it? The treaty ensures that, by law, the national deficit would be lower than %0.5 of GDP. Currently, it can not be lower than 3.0% of GDP. The EU Central Bank feels that this law is necessary to keep the banks from defaulting. Mr. Asmussen (Executive Director of the ECB) has recently said that Ireland is on track to doing much better by next year if the referendum passes and the program goes as planned. Ireland is different than other EU countries and this decision is put up for a referendum because it changes the written law of Ireland. Other EU countries the decision is made by elected officials and would need to be passed in the various parts of government.
I will post on the outcome of this, as I will still be in Ireland during the vote.
UPDATE: The Referendum has passed read more about it here