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Viewing cable 08DUBLIN431, IRISH DEPUTY PRIME MINISTER ASSESSES LISBON TREATY

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Reference ID Created Released Classification Origin
08DUBLIN431 2008-07-22 14:52 2011-07-22 00:00 CONFIDENTIAL Embassy Dublin
VZCZCXRO3375
PP RUEHAG RUEHROV
DE RUEHDL #0431/01 2041452
ZNY CCCCC ZZH
P 221452Z JUL 08
FM AMEMBASSY DUBLIN
TO RUEHC/SECSTATE WASHDC PRIORITY 9344
INFO RUCNMEM/EU MEMBER STATES PRIORITY
RUEHBL/AMCONSUL BELFAST PRIORITY 0781
C O N F I D E N T I A L SECTION 01 OF 02 DUBLIN 000431 
 
SIPDIS 
 
E.O. 12958: DECL: 07/23/2018 
TAGS: PGOV PREL ECON EFIN ETRD EUN PINR EI
SUBJECT: IRISH DEPUTY PRIME MINISTER ASSESSES LISBON TREATY 
AND IRELAND'S ECONOMIC SLUMP 
 
REF: A. DUBLIN 416 
     B. DUBLIN 389 
 
DUBLIN 00000431  001.2 OF 002 
 
 
Classified By: Ambassador Thomas C. Foley; Reasons 1.4 (B) and (D). 
 
------- 
Summary 
------- 
 
1.  (C) On July 15, 2008 Deputy Prime Minister (Tanaiste) and 
Minister for Enterprise, Trade and Employment Mary Coughlan 
told the Ambassador that it was "not possible" for the Irish 
Government to be ready by mid-October to propose a way 
forward to the European Council following the unexpected 
defeat of the Lisbon Treaty referendum on June 12.  She said 
that Ireland needs to maintain a sharp focus on exports and 
competitiveness to overcome the current economic slump, and 
that the trade unions, employers, and Government would all 
need to cooperate and compromise during the ongoing "Social 
Partnership" negotiations if the economy is to be righted. 
Bright and capable, Coughlan will be a valuable asset as the 
Irish Government seeks to come to grips with the Lisbon 
Treaty fallout and its current economic problems.  End 
summary. 
 
------------- 
Lisbon Treaty 
------------- 
 
2.  (C) Noting that she had just come from a Cabinet meeting 
on the Lisbon Treaty, Coughlan stated that it was "not 
possible" for the Irish Government to be ready by mid-October 
to propose a way forward to the European Council following 
the defeat of the Lisbon Treaty referendum by the Irish 
electorate on June 12 (Ref B).  She cited the need for 
extensive public consultation, which will be delayed by the 
traditional Irish shut-down during the summer holidays.  She 
also said that a Department of Foreign Affairs-funded 
research project into the reasons for the defeat ) a key 
element in determining how to proceed ) would not be ready 
until late September.  Fundamentally, she said, the Irish 
people had made their wishes known and the Government would 
have to respect their decision.  She called the way forward 
"uncharted waters." 
 
3.  (C) Coughlan referred to French President (and President 
of the European Council) Nicolas Sarkozy,s remarks on July 
15 that the Irish would have to vote again on the Lisbon 
Treaty as an inappropriate attempt to appeal directly to the 
Irish people ahead of his scheduled July 21 visit to Dublin. 
 
--------------------------------------- 
Enterprise and the "Social Partnership" 
--------------------------------------- 
 
4.  (C) Turning to the economy, Coughlan said that the 
economic downturn in Ireland (Ref A) had little to do with 
the rejection of the Treaty and everything to do with the 
U.S. and global economies, the price of oil, the shortage of 
credit, and the sub-prime problem.  She noted that Ireland 
had been particularly hard hit by a sharp decline in the 
construction industry.  Stating that Ireland needed to 
maintain a sharp focus on exports and competitiveness to 
weather the storm, she said she fully supported Finance 
Minister Brian Lenihan,s decision to hold the line on 
current expenditures, including a reduction of the public 
service by three percent. 
 
5.  (C) As the Minister responsible for negotiating the 
"Social Partnership" (the triennial agreement between the 
government, employers, and the trade unions on matters such 
as wage rates, benefits, and taxes, which has underpinned 
economic stability and growth since 1987) (Ref A), Coughlan 
said that everyone must cooperate and compromise to become 
part of the solution to the economic slump.  She indicated 
she was particularly worried that the trade unions might 
adopt aggressive tactics, which could deter prospective 
foreign investors.  The ongoing negotiations were 
particularly difficult she said. 
 
---------------- 
Northern Ireland 
---------------- 
 
6.  (C) Coughlan praised the U.S.-supported investment 
conference in Northern Ireland in May 2008, saying that she 
fully supported cross-border economic and other initiatives 
and believed that the development of an "all-island" economy 
is extremely important.  (Note: Coughlan comes from County 
Donegal, the northeastern-most corner of Ireland, which has 
much to gain from cross-border economic cooperation with 
 
DUBLIN 00000431  002.2 OF 002 
 
 
Northern Ireland.  End note.) 
 
------- 
Comment 
------- 
 
7.  (C) Coughlan is an intelligent, young, and energetic 
Irish leader.  She clearly understands the issues and appears 
able to hold her own in the rough-and-tumble world of labor, 
business enterprise, and trade.  Coughlan will be a valuable 
asset as the Irish Government seeks to come to grips with the 
Lisbon Treaty fallout and the current economic slump. 
FOLEY