Leading article: Ireland's Yes drowned out by Spain

 

Share
Related Topics

The decisive Yes on the eurozone fiscal compact is meaningful enough for Ireland itself, signalling both a clear-eyed assessment of the country's debts and a commitment to its place in the single currency. It means even more for the rest of Europe, however. As the first to vote on the treaty, Ireland has set the tone.

The referendum is, then, another inch towards the closer union that is the only way to resolve the euro crisis. But each step forward is technically complex, constitutionally uncharted and politically fraught. And it is no longer just Greece that threatens to blow the whole precarious exercise off course. Spain, long a source of concern, is in danger of fulfilling the direst prognostications.

Madrid has not helped itself. The govern-ment's confused – and confusing – plan to recapitalise the struggling Bankia only added to jitters in the financial markets. Now, with bond yields soaring, questions are being asked about Spain's ability to bear the €100bn-plus of bad debts rocking the banking system and capital is fleeing the country at a frightening rate. A bailout from either Europe or the IMF is looking unavoidable, despite the repeated denials.

The Spanish Prime Minister has much to answer for. But his eurozone partners must also play their part. Spain's problems are more alarming than those of Greece because of the size of the economy. But they are primarily a banking crisis, rather than a question of government solvency, and are therefore easier to solve. Spain's deficit is well above euro-area targets, but since it rose so high only due to the financial crisis, it is up to Brussels and Berlin to relax the deficit-reduction deadline. A Europe-wide rescue scheme for struggling banks should also be expedited. And Mariano Rajoy must set out the full extent of Spain's banking losses, with a plan for putting the sector back on track.

Such measures are not easy, but they are possible. And without them, there may not be time for the fiscal union nodded through in Ireland to take effect.

React Now

Latest stories from i100
iJobs Job Widget
iJobs General

Recruitment Genius: Junior Web Designer - Client Liaison

£6 per hour: Recruitment Genius: This is an exciting opportunity to join a gro...

Recruitment Genius: Service Delivery Manager

Negotiable: Recruitment Genius: A Service Delivery Manager is required to join...

Recruitment Genius: Massage Therapist / Sports Therapist

£12000 - £24000 per annum: Recruitment Genius: A opportunity has arisen for a ...

Ashdown Group: Practice Accountant - Bournemouth - £38,000

£32000 - £38000 per annum: Ashdown Group: A successful accountancy practice in...

Day In a Page

Read Next
Ed Miliband and David Cameron  

Cameron and Miliband should have faith in their bolder policies

Ian Birrell
Andreas Lubitz runs the Airport Race half marathon in Hamburg on 13 September 2009  

Being sensitive to mental health need not lead us to downplay the horror of what Lubitz did

Will Gore
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat
Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

Saudi airstrikes are fuelling the Gulf's fire

Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

The only direction Zayn could go

We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

Spells like teen spirit

A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

If fashion is a cycle, this young man knows just how to ride it

British designer Jonathan Anderson is putting his stamp on venerable house Loewe
Number plates scheme could provide a licence to offend in the land of the free

Licence to offend in the land of the free

Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

From farm to fork in Cornwall

One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
Robert Parker interview: The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes

Robert Parker interview

The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes
Don't believe the stereotype - or should you?

Don't believe the stereotype - or should you?

We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor
How to make your own Easter egg: Willie Harcourt-Cooze shares his chocolate recipes

How to make your own Easter egg

Willie Harcourt-Cooze talks about his love affair with 'cacao' - and creates an Easter egg especially for The Independent on Sunday
Bill Granger recipes: Our chef declares barbecue season open with his twist on a tradtional Easter Sunday lamb lunch

Bill Granger's twist on Easter Sunday lunch

Next weekend, our chef plans to return to his Aussie roots by firing up the barbecue
Joe Marler: 'It's the way I think the game should be played'

Joe Marler: 'It's the way I think the game should be played'

The England prop relives the highs and lows of last Saturday's remarkable afternoon of Six Nations rugby
Cricket World Cup 2015: Has the success of the tournament spelt the end for Test matches?

Cricket World Cup 2015

Has the success of the tournament spelt the end for Test matches?
The Last Word: Justin Gatlin knows the price of everything, the value of nothing

Michael Calvin's Last Word

Justin Gatlin knows the price of everything, the value of nothing