Vol. 522 No. 2
37 Mr. Sargent asked the Minister for Finance if he accepts that a major element contributing to our present inflationary problems is the loss of control over key aspects of our economic management following our membership of the euro currency. [18197/00]
As the Deputy is aware, there are several factors behind the increase in inflation. These include the weakness of the euro, the upward trend in oil prices, the increase in excise duties on tobacco, higher inflation in the services sector and the ongoing increases in alcohol prices.
There is realisation that within EMU cyclical differences between member states may emerge leading to temporary differences in inflation rates. However, national governments remain responsible for other economic policy matters, such as budgetary and structural policies which can affect price developments. In this respect we are taking the necessary steps to tackle inflation, most notably in relation to measures which aim to boost competition.
I am confident that over time inflation will begin to converge towards the EU average. This is essential if we are maintain our competitiveness and sustain economic growth.
