andMr. P. Barry asked the Minister for Finance the nature and implications for Ireland of the EEC's proposed regulation on interest subsidies.
Written Answers. - EEC Interest Subsidies Regulation.
251.
The European Council of 4 and 5 December 1978, which agreed on the introduction of the European Monetary System, decided that less prosperous member states should be helped to take part in the system by measures to strengthen their economies. It was agreed that the aid would take the form of interest subsidies on loans from the European Investment Bank and the new Community instrument.
The nature of the proposed regulation on these subsidies is to provide the legal basis for implementing this decision of the European Council.
The implications for Ireland are those already announced in the Dáil. The taking up of loans of up to £225 million each year for five years from the bank and the new Community instrument to help in the financing of projects, concentrating mainly on infrastructure, will enable the Government to receive the capitalised equivalent of the interest rebates on these loans viz., £45 million each year over the same five-year period.