Olivia Mitchell
Question:145 Ms O. Mitchell asked the Minister for Finance his views on the financial disciplines imposed by the stability pact. [5477/03]
Written Answers - Stability and Growth Pact.
In its programme, the Government has reaffirmed that the Stability and Growth Pact provides the overall framework for Ireland's budgetary policy.
I believe that the financial discipline that has resulted from the Stability and Growth Pact has been good for Europe. This can be clearly seen when one compares the lower level of budget deficits and debt in Europe in 2002 as against 1997.
In my view, budgetary policies must continue to be geared towards sustainability and meeting the requirements of the Stability and Growth Pact. Achieving budgetary positions "close to balance or in surplus over the medium term" is a key target for this purpose.
As I said in the House on 20 February in reply to Second Stage of the Finance Bill 2003, the essential message of the Stability and Growth Pact is that through fiscal prudence we can ensure economic growth and financial stability. Low debt, low deficits and sound fiscal policies are the bedrock of this policy. Furthermore, as I made clear in the House, we are not following these policies simply because of EU rules but because they make sound sense in themselves.