Vol. 457 No. 3
4 Mr. McCreevy asked the Minister for Finance the nature of the deliberations and the proposals and plans of action, if any, that were made at the recent EU Ministers of Finance meeting in Spain: and if he will make a statement on the matter. [15248/95]
The recent informal meeting of the Council of Economic and Finance Ministers held in Valencia on 29-30 September provided Ministers with an opportunity to review preparations for Economic and Monetary Union. As it was an informal meeting, no decisions were taken. Nevertheless, the discussions which took place were positive for European Monetary Union.
In particular, Ministers reaffirmed the commitment to the treaty provisions on European Monetary Union and specifically to the strict application of the treaty convergence criteria and the treaty timetable.
There was also general agreement that the Council decision on which member states are to qualify for European Monetary Union will be taken on the basis of 1997 budget outturns rather than on the basis of the 1996 outurns or the 1997 forecasts. These 1997 outturns, obviously, will not be available until early in 1998 and it is then that the decision will be made. This will leave us with the remainder of 1998 to prepare for the irrevocable locking of exchange rates against the single currency which will take place from 1 January 1999.
We also reviewed progress on the preparatory work for the reference scenario to be presented to the European Council in Madrid next December. The background to this reference scenario is that the Cannes European Council called for a plan of the main steps needed for the introduction of the single currency. Work is proceeding at EU level and Ireland is participating fully in it. In addition, the European Monetary Institute, the forerunner of the European Central Bank, is preparing its contribution to the reference scenario and expects to finalise it by mid-November. Adoption of the reference scenario by the Madrid European Council will be a significant step on the road to European Monetary Union and the single currency.
Finally, at Valencia, we made progress on the choice of a name for the single currency—a sensitive issue which is of considerable interest to the public in every member state. While a final decision has not been made, we have significantly narrowed the differences of views on this question. A recommendation will be made to the Madrid Council meeting on this matter.
As recent statements by German Ministers and the President of the Bundesbank indicate a hardened attitude by Germany on strict adherence to the criteria laid down for European Monetary Union, and as a difficult decision will have to the made by whatever Government is in office when the question of joining European Monetary Union arises at the end of the century, does the Minister agree it would be preferable for the Government to publish a White Paper spelling out all the options?
I appreciate the Deputy's constructive interest in this matter and I will reply in the same spirit. However, we do not have the options to which he referred. When the people voted for the Maastricht Treaty by way of referendum, they voted for us to join the single currency if we qualify on the day. Government policy since then has been directed towards ensuring that we will qualify. As judged by the European Commission, who will make the final decisions in this regard, Germany, Luxembourg and Ireland are currently the only three member states who qualify. We have not negotiated, nor did we seek to negotiate, an opt-out clause as did the United Kingdom and Danish Governments, subsequent to their second referendums. The Deputy's suggestion that there is a range of options is not in accordance with the commitments we entered into under international treaty law. However, there is considerable merit in his suggestion that we should publish a White Paper on the implications of European Monetary Union and the difficulties we will face if we join and others do not. I would welcome such a debate and will give serious consideration to the publication of a discussion document, but not necesarily a White Paper, following the European Council meeting in Madrid at which stage the picture will be much clearer. I welcome the Deputy's constructive interest and I know there is great interest among the social partners in having such a debate.
The Germans have not hardened their attitude on convergence criteria. They merely restated their position in an impeccably logical manner, namely, that there is no point in economies qualifying to converge on the day in question and shortly afterwards being relegated to the second division. That would not be in the interest of anybody. It was stated at Valencia that if European Monetary Union is to be maintained with any degree of success, convergence would have to be consistent and sustained.
I welcome the Minister's response in regard to a White Paper. I do not care what colour it is, but there should be adequate discussion on all the options. I am aware that following the referendum on Maastricht, which took place when Fianna Fáil and the Progressive Democrats were in Government, we do not have an opt-out clause, but surely the Minister is not suggesting that if at the end of the decade it was not in our best interest to join European Monetary Union we would be compelled to do so. If Germany maintain that stricter interpretation of the criteria is the only way countries will be allowed join, the Government must impose severe financial restraint, and given its record in the 1995 budget Estimates, I do not look forward to that. I am pleased the Minister considers that all sectors of the economy should be aware of the implications of European Monetary Union well in advance of our joining.
I would welcome a debate on the matter and will consult the Whips in regard to an appropriate time for such a debate. It might be more productive in the New Year when we know the outcome of the Council meeting in Madrid.
