High-Stakes Referendum Ireland's Test Vote on Merkel's Fiscal Pact

All of Europe is looking to Ireland as the country prepares to vote on Thursday in a referendum on the unpopular fiscal compact for greater budgetary discipline. If the Irish reject the new treaty, it won't just be a major blow to its main advocate Angela Merkel. It could also spark panic on the financial markets.
Scaremongering with Merkel: People pass an anti-fiscal pact placard in Dublin.

Scaremongering with Merkel: People pass an anti-fiscal pact placard in Dublin.

Foto: PETER MUHLY/ AFP