Dáil Éireann debate -
Wednesday, 7 Feb 1996

Vol. 461 No. 2

Written Answers. - British Economic and Monetary Union Membership.

Dermot Ahern

Question:

14 Mr. D. Ahern asked the Minister for Finance whether he feels optimistic that Britain will join Economic and Monetary Union in 1999 with our EU counterparts as per the Taoiseach's reported statement before the Madrid European Council Meeting in December 1995; and if he will make a statement on the matter. [19235/95]

Minister for Finance (Mr. Quinn)

I understand that the Deputy is referring to remarks made by the Taoiseach in an RTÉ radio interview given in Madrid on 15 December during the European Council.

In this remarks the Taoiseach reiterated the Government's commitment to ensuring that Ireland will qualify for Economic and Monetary Union along with the other member states moving to Economic and Monetary Union from the outset. He also indicated his belief that the United Kingdom will decide not to stay out of the single currency when the UK decision comes to be made. The Taoiseach based his belief on the UK's history in relation to Europe of hanging back and being sceptical but, when the time comes for a decision, of taking that decision in favour of Europe. I share the Taoiseach's belief that, based on history, it would not be prudent to assume the UK will decide to stay out of the single currency in 1999.

I would stress, of course, that the UK Government has indicated that a final decision on Economic and Monetary Union participation will not be made until closer to the commencement date of 1 January 1999. Between now and that commencement date my priority as Minister for Finance is to ensure that the Irish economy continues to perform in a way which will ensure that we qualify for Economic and Monetary Union and in a way which will ensure that our participation in Economic and Monetary Union, when formed, will be successful. The Deputy will be aware of the striking progress we have made in this regard. Last year was the seventh successive year when our general Government deficit as a percentage of GDP was comfortably below the 3 per cent Maastricht reference value and my recent budget provided for a deficit comfortably below 3 per cent again in 1996. We have continued to make significant reductions in our ratio of debt to GDP, the other key measurement for Maastricht purposes, which is expected to fall to 81 per cent in 1996. The Government is committed to continuing this sound performance in 1997: it is the fiscal outturns for 1997 which will form the basis for the European Council's decision in early 1998 on which member states qualify for participation in Economic and Monetary Union from 1 January 1999.