Minister for Finance Michael Noonan has today warned he will have to introduce a tougher budget that will include tax increases if the public rejects the Fiscal Treaty Referendum.

Speaking on his way into a Cabinet meeting this morning, Mr Noonan rejected suggestions that the country would still be able to access funding if a No vote is returned by the electorate.

"It's very clear on this treaty that only those countries that ratify it will have access to European Stability Mechanism (ESM) funding and there are no other funds," he said.

"If there's a No vote the Budget I'll be planning for later in the year will be dramatically more difficult than if there's a Yes vote.

"If people think that by voting No they'll avoid further tax cuts and increases, actually a No vote will do the opposite," he added.

Fianna Fáil described Mr Noonan's comments as "unhelpful" and said they would only serve to alienate potential Yes voters.

The problem is not that there is no mechanism for stimulating the Irish economy in the event of a no vote and a default (or similar) on Anglo Irish promissory notes etc. -  the problem is that the national elite have absolutely no idea how this might be done.

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