asked the Minister for Foreign Affairs the kind of supranational institution which he envisages will deal with monetary union.
Ceisteanna—Questions. Oral Answers. - Monetary Union.
24.
The existing Community committees in the economic and monetary field are the Monetary Committee, the Short-term Economic Policy Committee, the Medium-term Economic Policy Committee, the Budgetary Policy Committee and the Committee of Central Bank Governors.
A decision has recently been taken to create a European Monetary Co-operation Fund which will have the task of contributing to the progressive establishment of economic and monetary union between the member States. There has also been created this month a group, representative of the member States and the Commission, to assist the Committee of Permanent Representatives in its work of preparing the consideration by the Council of the move to the second stage of economic and monetary union. This is not a permanent Community body but rather an ad hoc one established in response to the need to take into consideration the inter-relationship between all relevant elements including, of course, social policy, regional policy, industrial policy and so on in moving to the second stage.
Progress towards economic and monetary union has been a priority of the community since the meeting of heads of State or Government in Paris in October, 1972.
The Community is at present considering concrete measures for passage to the second stage of the union on the basis of a communication from the Commission. It is, as yet, too early to say what institutions or bodies in the monetary field, supranational or otherwise, may be necessary, in addition to those I have mentioned, to bring about economic and monetary union.
It should be made clear, however, that, in the view of the Government, a substantial modification of the present institutional arrangements of the communities, involving the introduction of effective democratic control by a directly-elected European parliament, is an essential prerequisite of the establishment of a full economic and monetary union.
The reply looks full but it does not really answer my question. My question arises out of the statement in the Minister's Estimate speech when he said that a supranational body would have to be established to control the fund. Is this 6th of April committee which was established relevant at all to total monetary union? The Minister in his Estimate speech referred to the hazards of the common agricultural policy because no system on fixed parities had been settled upon and I cannot see any progress in that so far.
I am not quite clear what I have not answered. There are two separate items here. One is the technical institutions required to implement economic and monetary union.
It is the supranational institution I am concerned about.
All of these institutions are part of the supranational institution of the EEC although some of them, which are committees of representatives of governments, are more inter-governmental than supranational. But the institutions which are committees of the Community itself are supranational in character. I think that what the Deputy may have in mind, although I cannot trace the reference immediately, is the concern I expressed in my speech that if we were to move towards economic and monetary union there should be full democratic control of these institutions which does not now exist. The last paragraph of my reply reiterated that in the most forthright and specific terms.
Will the Minister then depend upon the European Parliament solely for such control?
I do not think that that would be a fair inference. The first thing is to achieve democratic control by a directly elected European Parliament but to achieve that in a relationship to the other institutions. The relationship between Parliament and the other institutions will thereby be modified and their rules will be modified. It is not simply a question of Parliament itself. I do not think that any of us at this stage have a clear view as to what is the best way to tackle this problem. It is something which concerns the Government and the Government is consulting other governments about it with a view to seeing how this problem can best be tackled.
Does the Minister think that one of the strong Members of the EEC, France, would agree to the establishment of a supranational body to promote monetary union?
I cannot speak for the French Government but this Government would not be able to agree to a full monetary union of the kind that has been spoken of unless there was full democratic control of the institutions. I believe that this is clearly understood by other governments. It is something that will be thought out in the years ahead between us.