Ireland Votes in Referendum on Fiscal Treaty

Even if Ireland did vote 'no' on the fiscal pact, it would not torpedo the agreement. The pact is set to go into effect when 12 of the 17 eurozone member states sign the treaty into law. Photo by dpa

Irish voters will vote Thursday on whether to ratify the European Fiscal Treaty, which sets strict rules on the budget deficits countries are allowed to run up.

Rejecting it would debar Ireland from emergency EU funding when its current bailout package expires in 2013.

Ireland is the only one of 25 nations which is putting the fiscal pact to a national vote.

The pact, signed by all EU members except the Czech Republic and the UK, allows EU member states to co-ordinate their budget policies and impose penalties on rule-breakers.

Signed in February, it commits all ratifying members to achieve budget deficits of less than 0.5% of economic output.

The country's 3.1m voters have twice rejected European Union treaties - in referendums in 2001 and 2008 - though both votes were then overturned in subsequent polls.

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

In a nationwide television address before campaigning ended, the Irish Prime Minister, Enda Kenny, urged people to vote in favor of the treaty.

"I ask you to make a further contribution by coming out to vote 'yes' on Thursday. Yes to stability. Yes to investment. Yes to recovery. Yes to a working Ireland," he said.

Sinn Fein president Gerry Adams, who is campaigning against the treaty, told voters not to be fooled.

"Be wise. Join with the millions across Europe who are demanding an end to austerity. On Thursday, vote no."

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