Ivor Callely
Question:73 Mr. Callely asked the Minister for Finance the present position regarding the progress on the development of a single EU currency; and if he will make a statement on the matter. [9513/95]
Written Answers. - Single EU Currency.
The Treaty on European Union sets out a timetable for movement to the third stage of Economic and Monetary Union and a single currency. Briefly, if a majority of member states meet the conditions, the third stage can begin in 1997; if a date for the start of the third stage has not been set by end-1997, the third stage will begin in 1999.
The focus of activity among member states at present is on meeting the Treaty conditions — which relate to Government deficit, debt, inflation etc. — for moving to Economic and Monetary Union. The excessive deficit procedure set out in the Treaty, which is designed to increase economic convergence among the member states, was implemented in 1994 for the first time: only two member states, Ireland and Luxembourg, were found not to have an excessive deficit. Ireland continues to meet the Treaty criteria in 1995.
As regards technical preparations for the introduction of the single currency, the Deputy will be aware of the interim report of the Maas Group and a final report by this group should be finalised soon. The European Commission is also preparing a Green Paper on the practical implications of the introduction of a single currency and this should be ready shortly. The Mint Directors of the member states are examining issues in relation to the design and production of coins of a single currency. The European Monetary Institute, which was established in 1994, is also undertaking a considerable amount of preparatory work in conjuction with member state Central Banks.