” url=”http://www.flickr.com/photos/uggboy/4273262980/in/photostream/”]It hasn’t gotten that much attention, but Ireland is holding a national referendum today on whether it will join the Fiscal Compact, the agreement made last year whereby every Eurozone country basically agrees to strict deficit controls and oversight. Basically it’s the beginning to giving up budget sovereignty, a necessary long-term move if the Eurozone is ever going to have any kind of permanent transfers from rich to poor countries.Ireland is the only country that’s having a national referendum on the question.
And it’s expected to pass, but not overwhelmingly so. Polls show a consistent lead, but also a consistent bloc of undecided voters which could throw a wrench into things. Ireland’s pro-Fiscal Compact contingent seems to be, shall we say, ‘cautiously optimistic.’
Polling ends tonight at 10 PM Ireland time, and counting begins tomorrow.
For a really great read on the issue, see economist Megan Greene’s take, wherein she argues that the Fiscal Compact is not going to solve anything, but that Ireland needs to vote yes. Why? Because Ireland will likely need another bailout, she says, and rejecting the Fiscal Compact will make getting one basically impossible.