Ireland Votes EU Budget Restrictions

Ireland Votes EU Budget Restrictions.

Ireland is voting on whether to sanction the European fiscal pact, which sets strict rules on the budget deficits that countries are allowed to run up.  If rejected, Ireland would be banned from emergency EU funding when its current bailout package expires in 2013.

The pact, signed by all EU members except the UK and the Czech Republic, allows EU member states to co-ordinate their budget policies and impose penalties on rule-breakers.  It commits all ratifying members to achieve budget deficits of less than 0.5% of economic output.

Of the 25 pro-pact EU nations, Ireland is the only one putting it to a national vote.  However, only 12 of the 17 eurozone states need to ratify it, so an Irish "No" vote would be unlikely to halt it.  

Those against the treaty argue that austerity is not working and suggest that the country should instead default on debts at five nationalised banks.