Treaty will lead to greater recession, additional business closures and higher unemployment: Crowe

Dublin South West Sinn Féin Seán Crowe has denounced the Austerity Treaty believing its implementation will result in a deepening recession, additional business closures and further unemployment.

Deputy Crowe said:

“The Irish and Eurozone economies are now officially back in recession. Four years of austerity has crippled domestic demand a fact highlighted last week by the Irish Exporters Association which said the Eurozone recession is slowing our export growth.

“Increasing numbers of business people are saying that demand has dried up and people have no money to spend.

“The imposition of this treaty will mean an extra €6 billion in tax increases and spending cuts post 2015 all of which will further depress consumer demand and push the domestic economy further into recession.

“The imposition of Austerity across the EU will deepen the EU wide recession and depress our key export market.

“We are already living with the consequences of what is happening. 1,600 businesses have closed in the last year, a trend which is increasing. This Treaty’s draconian deficit rules will further contract our domestic and export market making Ireland less attractive for business.

“The Irish and Eurozone economies desperately need investment in jobs and growth. The Government and their EU counterparts are proposing the very opposite. The only way to generate growth is to improve competitiveness and simultaneously stimulate demand. This is recognised by the growing number of political parties, trade unions and electorates across Europe who are opposing implementation of austerity measures.

“This government’s policy of austerity is becoming increasingly isolated within the EU and is being recognised as unworkable. Now is the time a stimulus package and an investment in jobs,” concluded Deputy Crowe.