Phil Hogan
Question:44 Mr. Hogan asked the Minister for Finance his views on whether Ireland will be within the necessary financial criteria to participate in the European Monetary Union; and if he will make a statement on the matter.
Written Answers. - European Monetary Union.
I assume that the Deputy has in mind the budgetary convergence criteria in relation to the General Government Deficit and Debt-GDP ratios set out in Article 104 (c) of the Maastricht Treaty.
The position is that Ireland already satisfies these criteria — and has done over each of the past five years. It appears very probable that this year's General Government Deficit will be among the lowest in the European Community. As regards the period from 1994, when the provisions formally come into effect, I would refer the Deputy to the Fianna Fáil and LabourProgramme for a Partnership Government 1993-1997. In the section which summarises the Government's policy in the budgetary area, there is a fundamental commitment to the maintenance of “firm control of our public finances so that there is a steady reduction in the national debt-GDP ratio”. This commitment is specifically defined in the programme by reference to the budgetary convergence criteria of the Maastricht Treaty, which require adherence to an annual General Government Deficit of around 3 per cent or less of GDP, and the reduction of the debt-GDP ratio towards 60 per cent.