Michael Noonan
Question:154 Mr. Noonan asked the Minister for Finance his views on changing the terms of the Stability and Growth Pact. [5434/03]
Written Answers - Stability and Growth Pact.
In its programme, the Government reaffirmed that the Stability and Growth Pact provides the overall framework for Ireland's budgetary policy.
In November 2002, the European Commission published new proposals for strengthening budgetary co-ordination, including in relation to the implementation of the Stability and Growth Pact. This issue was discussed at the meeting of European Finance Ministers last week.
At that meeting, I broadly welcomed the thrust of the Commission proposals overall. I noted in particular the Commission proposal that the requirement to maintain a budgetary position at "close to balance" could be amended slightly and temporarily to allow for large structural reform measures such as productive investment, where a country has made a sound case and where the public finances of the member state concerned are deemed also to be 'sound'.
This issue remains the subject of further discussion. It is due to be finalised at the spring European Council in March.