Dáil Éireann debate -
Wednesday, 6 Nov 1996

Vol. 471 No. 2

Written Answers. - Economic and Monetary Union.

Peter Barry

Question:

61 Mr. Barry asked the Minister for Finance the process of consultations, if any, which is taking place with national interests prior to Ireland entering economic and monetary union, provided that we continue to meet the required economic criteria; and if he will make a statement on the matter. [20495/96]

Minister for Finance (Mr. Quinn)

The Treaty on European Union, which sets out the provisions relating to economic and monetary union, was the subject of a referendum in Ireland in 1992 and was endorsed by a substantial majority of those who voted. A White Paper on the Treaty, which included a chapter on economic and monetary union, was published in advance of the referendum.

In addition, earlier this year I wrote to the chairman of the Dáil Select Committee on Finance and General Affairs and offered to make a presentation to the committee about economic and monetary union; my offer was accepted and the committee held a hearing on economic and monetary union on 7 and 8 March. The committee has since heard other presentations on economic and monetary union. I have continued to ensure that economic and monetary union is the subject of frequent ministerial speeches; these naturally generate feedback which I am careful to note.

Also, earlier this year I commissioned, on behalf of the Government, an independent study of the economic implications for Ireland of economic and monetary union. This study was carried out by the Economic and Social Research Institute which published its report in July. Copies of the ESRI report have been widely disseminated and the report has been the subject of substantial debate which I continue to follow with interest.

In addition, the National Economic and Social Council, on which the social partners are represented, has recently published its conclusions and recommendations for a strategy into the 21st century. The impact of economic and monetary union on macro-economic policy is considered in Part II of the publication. The Central Bank of Ireland is engaged in ongoing consultations with the banking and financial sector, which will have a key role in relation to economic and monetary union and the changeover to the single currency.

As regards the practical preparations for economic and monetary union and the changeover to the euro, my Department has set up an informal technical working group to advise it on technical issues in the run-up to the 1998 Council decision on which member states qualify for economic and monetary union. The Irish Business and Employers Confederation, the Chambers of Commerce of Ireland, the Director of Consumer Affairs, the Irish Bankers' Federation, the Irish Farmers' Association, the Irish Stock Exchange, and the Consultative Committee of Accountancy Bodies-Ireland, as well as my Department and the Central Bank of Ireland, are represented on this informal group. The group would probably form the nucleus of a more formal structure, like the Irish Decimal Currency Board which oversaw the decimalisation of the Irish pound in 1971, to oversee the practical arrangements needed to manage the transition to the euro.