Constitutional Crossroads Blues

The Republic stands at a crossroads. No comely maidens at this lonely junction; much more likely is the offer of sovereign souls for sale......

On BBC’s Newsnight earlier this week, market libertarian economist Irwin Stelzer characterised the current situation in Ireland as nothing more exceptional than another shift in the seemingly random migrations of global debt. 

Well, random to most of us at least who don’t work in markets like the Catastrophe Exchange or any of the other esoterica and exotica that banking has discovered in its alchemical quest to turn mathematics into gold.

Money will be found (as it always is) to service this debt; whether it's from the ECB and the Germans or the IMF which ultimately means the US. It actually doesn't matter from where; in a system where financial flows are so globalised and trades so instantaneous it's origin becomes a bit of a moot point, macroeconomically speaking.

But the one certainty in all of it is that the Irish people will suffer and we’ll doubtless be joined by some more of the PIGS (the English media’s helpful acronym for Portugal Ireland Greece and Spain) once the toxic debt parcel goes round again.

Stelzer is a widely respected economist and his analysis, while offering the self-serving certainty of the current system’s continuance, offers little in the way of moral guidance for the future. Nor should it. Economics only ever employs enlightened social theory or principles of ethics as an adjunct to its vindication of market dynamics which are of course dominated by those noble human traits; fear and greed.

And those dynamics, as they apply to Ireland (and every other country that’s been gang-raped by the international banking system) have become quite naked by now. It really does come down to this: bet on a vulnerable country failing in the debt markets and then reap the rewards of your self-fulfilling punt as the country’s population bear the brunt of the bad debt you’ve created.

But sadly, this is the prognosis that will largely prevail as a matter of belief and orthodoxy rather than rational enquiry. To contemplate anything else, we are told, is tantamount to subversion. Even now therefore, deviating from the global libertarian route-map is not a prospect that the Plain People of Ireland are ready to entertain and who can blame them? In capitalism, the one choice we can never be offered is how not to think like consumers.

What I find quite curious however is that, so far, to my knowledge at least (and I’d love to be corrected), no serious consideration seems to have been given to mounting some kind of constitutional attack on what the government is proposing.

The Deptford Croppy is relieved to see however that’s he’s not alone in his constitutional noodlings. In a letter to the Irish Times today, Frank Schnittger wrote: “The Irish Constitution (Article 40.3.2) guarantees the right to property and Article 43 acknowledges that these rights ought to be regulated by the principles of social justice and the common good. By what principle of social justice are those with no ownership of the banks made liable for the losses of those who do? Has the Government not acted unconstitutionally in this case?”

Fair point Frank, and a good natural justice stance but I’m guessing the government would probably try to rely on procedural safeguards by arguing that this budget is a Money bill making it an exception which falls outside the remit of the President’s discretionary power to refer bills to the Supreme Court.

McAleese: 6 out 8 presidents
have used their discretionary powers

That notwithstanding, this is perhaps the most extraordinary Budget in the history of the Republic and the current Irish government must surely be acting ultra vires.


Financial bill or no, this government, without the consent of the people, is attempting pass into legislation what are effectively international agreements that will bind the country for years to come with no more scrutiny than a simple majority vote in a parliament of rogues.

By failing to call an immediate general election, the Irish government has openly refused to give the people their say on an issue that will affect generations of citizens.


On a bad day, one might even theorise that they are showing the same blatant contempt for the will of the people as any unconstitutional enemy of the state that might spring to mind....


It seems then, that it is now up to the President to refer this bill when it comes before her and for the Irish Supreme Court to look to the spirit of our Constitution. When the time comes next month, they better do their job and give credence to the separation of powers. The legitimacy of the Republic depends on it.

Still not sure what the whole crisis is about? Then click here for a detailed tutorial.