Ivor Callely
Question:95 Mr. Callely asked the Minister for Finance if he will outline the European Commission's recommendation under Article 99(4) of the treaty regarding budgetary policy; and if he will make a statement on the matter. [30068/01]
Written Answers. - Budgetary Policy.
At the Council of Economic and Finance Ministers (ECOFIN) in Brussels on the 12 Febuary 2001 Ireland received the following recommendation under Article 99(4) of the treaty:
To remove the inconsistency with the broad guidelines of the economic policies, engendered by the budget plans for 2001, the Irish government should take countervailing budgetary measures during the current fiscal year. Under the macroeconomic assumptions of the 2000 update in the Stability Programme, this should ensure that no reduction in the underlying budgetary surplus from 2000 takes place.
The Commission is invited to report during 2001 on economic and budgetary developments in Ireland. The Council will closely monitor these developments and in particular assess consistency with the broad guidelines of the economic policies.
At the ECOFIN meeting on 6 November 2001, the Council agreed a Commission report which stated that the:
unexpected developments, which are slowing down the economy and thereby reducing inflationary pressures, mean that the inconsistency addressed in the Recommendation between the Irish budgetary plans and the goal of economic stability has lost part of its force for this year.
The issue as far as 2001 is concerned has, therefore, moved on.