Dáil Éireann debate -
Wednesday, 28 Jan 1998

Vol. 486 No. 1

Written Answers. - Convergence Programme.

John Perry

Question:

103 Mr. Perry asked the Minister for Finance the communication, if any, he or his Department has received from the EU Commission in relation to the economic impact of the 1998 budget and Estimates; the nature of these comments; and if he will make a statement on the matter. [1915/98]

Minister for Finance (Mr. McCreevy):

In April 1997 Ireland submitted its convergence programme for the period 1997-99. As provided for in Article 103 of the Maastricht Treaty this is designed to facilitate the multilateral surveillance of economic policies in the run-up to the third stage of Economic and Monetary Union. From next year convergence programmes will be replaced by stability programmes which will outline how our medium-term budgetary objectives will be achieved.

The Council invited the Commission at last June's ECOFIN meeting to monitor progress under the programme and agreed, in the context of the multilateral surveillance procedures, to review Ireland's progress against the targets outlined. An updated version of Ireland's convergence programme was submitted in December 1997 to the Commission. This was included in the "Economic Background to the Budget" circulated to the House as part of the budget 1998 documentation. It outlined the latest medium-term budgetary projections taking account of the budget and the Department of Finance's latest economic projections.

Discussions on this updated programme are proceeding within the Union. In the normal way the conclusions in relation to member states' convergence programmes are brought before the ECOFIN, and the views of Ministers are incorporated, as appropriate, in the communiqué at the end of the meeting.