Vol. 520 No. 1
163 Mr. Broughan asked the Minister for Finance the way in which new EU common rules governing national tax cuts will impact on fiscal planning for 2001; and his views on whether the tax changes in the 2000 budget contravened these rules as, for example, the pro-cyclical criteria. [14873/00]
I assume the Deputy is referring to the European Commission report entitled Public Finances in EMU – 2000 published on 23 May 2000. As the report itself states, it is essentially an issues paper "whose aim is to contribute to the policy debate on the fiscal challenges in EMU".
While a summary of the report was presented to ECOFIN Ministers in advance of its publication, there was no formal agreement by Ministers to abide by any of the recommendations contained in the report relating to taxation or any other policy issues. While I have noted with interest the key elements of the report, those elements do not constitute rules and do not have any binding impact on fiscal planning. As such, the issue of whether or not budget 2000 contravened the report does not arise.
Finally, it should be remembered that the tax reductions contained in budget 2000 are part of a strategy to improve work incentives, increase labour supply and deliver moderate pay increases in the context of the Programme for Prosperity and Fairness. I am confident that this strategy will ensure continued sustainable economic growth.
