Bernard J. Durkan
Question:27 Mr. Durkan asked the Minister for Finance if he has satisfied himself with the performance of the punt in the context of the euro and other currencies; and if he will make a statement on the matter. [22665/99]
Written Answers. - Euro Changeover.
Bernard J. Durkan
Question:131 Mr. Durkan asked the Minister for Finance if he has satisfied himself with the degree of development in euro countries with particular reference to its value as against other currencies; and if he will make a statement on the matter. [22946/99]
Bernard J. Durkan
Question:132 Mr. Durkan asked the Minister for Finance if Ireland's position vis-à-vis the euro is in accordance with projections; and if he will make a statement on the matter. [22947/99]
I propose to take Questions Nos. 27, 131 and 132 together.
Ireland was one of the 11 European Union member states which adopted the single currency, the euro, with effect from 1 January 1999. Accordingly the currency of the State is the euro, and the Irish pound unit is a sub-division of it. The irrevocably fixed conversion rate between the euro and the Irish pound was set at 1 euro = 78.7564 pence.
The European Central Bank enjoys complete independence in relation to monetary policy. However, the treaty provides that the Council, ECOFIN, may formulate general orientations for exchange rate policy in relation to the euro, without prejudice to the ECB's primary objective to maintain price stability. ECOFIN decided at its Luxembourg meeting in December 1997 that these general orientations would only be formulated in exceptional circumstances, but reaffirmed that they should always respect the independence of the ECB and be consistent with its primary objective to maintain price stability.
As Minister for Finance, I have not commented in the past on either the Irish pound exchange rate or the euro exchange rate and I do not now propose to make any specific comment on the exchange rate of the euro – past, present or future.