Austin Deasy
Question:38 Mr. Deasy asked the Minister for Finance the additional costs or savings if any, there will be for consumers, when we enter the EMU system; and if he will make a statement on the matter. [7741/97]
Written Answers. - Economic and Monetary Union.
The Economic and Social Research Institute report on the Economic Implications For Ireland of economic and monetary union, which I commissioned last year, concluded that, on balance, "Ireland can expect to benefit modestly in terms of income and employment through membership of European Monetary Union. This conclusion is reinforced by the fact that the unquantified benefits are also likely to favour European Monetary Union entry". These benefits will be shared by consumers and producers.
Particular benefits to consumers will arise through the prospect of lower interest rates within EMU, the elimination of exchange rate transaction costs for tourism and the consolidation and intensification of the single market, which will enhance competition, and lead to greater price transparency and choice for consumers.
Although economic and monetary union will imply significant once-off costs to business in changing over to the euro, increased competition and price transparency will help to minimise the extent to which these costs are passed on to consumers.