Vol. 407 No. 2
7 Mr. Ferris asked the Minister for Finance if he will outline the present position regarding the proposed establishment of a European Central Bank; whether he has agreed a draft constitution for such a bank; if the bank officials in the working party, based in Basle, Switzerland, have committed the country to aspects of the constitution of the proposed bank; and if he will make a statement on the matter.
In Madrid in June 1989, the European Council asked the competent bodies of the Community to carry out preparatory work for the Inter-governmental Conference on Economic and Monetary Union. In response, the Committee of Governors of the Central Banks of the member states, which was one of the bodies concerned, prepared a draft statute of the European System of Central Banks and of the European Central Bank. The draft statute addresses the situation in Stage III of Economic and Monetary Union when there will be a single monetary policy for the Community and when exchange rates between Community currencies will be irrevocably fixed as a prelude to the introduction of a single Community currency.
The draft statute, together with an introductory report and a commentary, was presented to the Economic and Financial Affairs Council in November 1990. The initial response to it was quite favourable, although it was recognised at the time that a more informed reaction would have to await the detailed analysis and negotiation by the Inter-governmental Conference on Economic and Monetary Union.
Deputies will be aware, from information which I have given previously to this House, that the work of the ministerial conference is being prepared by a group of personal representatives drawn primarily from Finance ministries. While this group have considered the most important aspects of the draft statute in their discussions on monetary policy and institutional matters, they have yet to complete their examination of the document as a whole. Consideration by the ministerial conference of the issues is linked with this examination.
I presume that the group of bank officials to which the Deputy refers are the Committee of Central Bank Governors, including the bank officials who report to them. I can categorically assure him that there is no question of any undertakings being given in any such group which would commit this country to any part of the proposed statute.
The final draft of the Treaty, of which the statute which is eventually agreed will constitute an integral part, will be the fruit of discussions within the Council of Ministers. It will then be for the member states, acting in accordance with their own procedures, to ratify the revised text.
Will the Minister indicate the timetable in his Department within which we will see the draft agreement which is likely to come from the Inter-governmental Conference?
My best judgment is that we are a long way from that because revisions, statutes and drafts are only being looked at. There have been three meetings of Ministers at inter-governmental conference level and, therefore, we expect it will be much later in the year before we get to the discussion and detail to which the Deputy referred, if even then.
Is the Minister indicating to the House that the likelihood of this House debating domestic legislation to give effect to the EMU draft treaty, and its ratification here, is as far away as perhaps 12 months?
It is difficult to say. Discussions at a very long meeting of the monetary committee this week concentrated on trying to speed up the process of review of the existing treaty and its statutes. It is very difficult to say what the timetable may be but certainly there was a view that a draft treaty would be available for inspection by the middle of this year. However, that timetable will not be reached and it will be the end of the year before that is ready. Of course, things can change and it is very difficult to put a date on it.
(Limerick East): Have the Government formed a view on the ratification process of the proposed agreements which will be reached in the course of the early nineties? It seems, for example, that any international treaty which forms a European Central Bank will require to be put to the people by way of referendum. Is it the Government's thinking that there will be a series of referenda dealing first with the Central Bank, subsequently with a common currency, political union and again on political union involving defence? Is it the view of the Government that all things will be put in place and that the question will be put in one referendum to the people when the time comes?
That is a totally different question from the one we are discussing and the Deputy is well aware of that. He also knows that many of the questions he asked are matters for another Minister in relation to the IGC on political union and, consequently, he will have to put down a series of questions in that regard.
I am moving to Question No. 8.
