Thursday 31 May 2012

Voting YES to this treaty will enable/force Ireland to participate in the ESM


If Ireland votes YES to this treaty, it will mean that we are participating in the ESM. This has been portrayed as a good thing in the event we need a future bailout. However, the ESM is a different treaty, hidden behind the one you are being asked to vote on. The reason it’s being hidden is clear when you look at the details included in it.

Firstly, Ireland will have an initial liability of over €11.1 billion to pay into the ESM. This can be increased on request by the ESM at any point and we’ll have 7 days to pay up. So what we’re doing here is borrowing money, at 3%, to put into a bailout mechanism that may or may not give us a loan in future. It has been argued that this bailout fund, at €700,000,000 will not be enough, particularly with Spain in severe trouble. So if they need a bailout, and we’ve put 11billion in, they may not have enough to give Ireland anything.

Then you have to look at the clauses in the treaty. This video will give you an idea of how dangerous participation in the ESM actually is.



In Ireland, and throughout Europe, nobody has been held accountable for the crisis we are in. The immunity clauses illustrate that that will continue in perpetuity.


ARTICLE 9

Capital calls

The Board of Governors may call in authorised unpaid capital at any time and set an appropriate period of time for its payment by the ESM Members.


ARTICLE 32

Legal status, privileges and immunities

1. To enable the ESM to fulfil its purpose, the legal status and the privileges and immunities set out in this Article shall be accorded to the ESM in the territory of each ESM Member. The ESM shall endeavour to obtain recognition of its legal status and of its privileges and immunities in other territories in which it performs functions or holds assets.

2. The ESM shall have full legal personality; it shall have full legal capacity to:
(a) acquire and dispose of movable and immovable property;
(b) contract;
(c) be a party to legal proceedings; and
(d) enter into a headquarter agreement and/or protocols as necessary for ensuring that its legal status and its privileges and immunities are recognised and enforced.

3. The ESM, its property, funding and assets, wherever located and by whomsoever held, shall enjoy immunity from every form of judicial process except to the extent that the ESM expressly waives its immunity for the purpose of any proceedings or by the terms of any contract, including the documentation of the funding instruments.

4. The property, funding and assets of the ESM shall, wherever located and by whomsoever held, be immune from search, requisition, confiscation, expropriation or any other form of seizure, taking or foreclosure by executive, judicial, administrative or legislative action.

5. The archives of the ESM and all documents belonging to the ESM or held by it, shall be inviolable. T/ESM 2012/en 47
6. The premises of the ESM shall be inviolable.

7. The official communications of the ESM shall be accorded by each ESM Member and by each state which has recognised the legal status and the privileges and immunities of the ESM, the same treatment as it accords to the official communications of an ESM Member.

8. To the extent necessary to carry out the activities provided for in this Treaty, all property, funding and assets of the ESM shall be free from restrictions, regulations, controls and moratoria of any nature.

9. The ESM shall be exempted from any requirement to be authorised or licensed as a credit institution, investment services provider or other authorised licensed or regulated entity under the laws of each ESM Member.

ARTICLE 33

Staff of the ESM

The Board of Directors shall lay down the conditions of employment of the Managing Director and other staff of the ESM. T/ESM 2012/en 48

ARTICLE 34

Professional secrecy

The Members or former Members of the Board of Governors and of the Board of Directors and any other persons who work or have worked for or in connection with the ESM shall not disclose information that is subject to professional secrecy. They shall be required, even after their duties have ceased, not to disclose information of the kind covered by the obligation of professional secrecy.

ARTICLE 35

Immunities of persons

In the interest of the ESM, the Chairperson of the Board of Governors, Governors, alternate Governors, Directors, alternate Directors, as well as the Managing Director and other staff members shall be immune from legal proceedings with respect to acts performed by them in their official capacity and shall enjoy inviolability in respect of their official papers and documents.

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