The Republic of Ireland is set to hold a referendum on the European fiscal treaty on 31 May. The referendum would allow the Government of Ireland to ratify the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union.
The aim of the treaty is to ensure that the Euro zone economies have a stable currency system. It seeks to do this by introducing common rules to foster budgetary discipline among the countries in the Euro area, then to strengthen the coordination of their economic policies and, finally, to improve the way they manage the Euro zone by strengthening its governance system.
Though the United Kingdom and the Czech Republic have decided not to sign the treaty, in the case of Ireland, a ‘no’ vote against the treaty may force it out of the Euro.