Pádraic McCormack
Question:29 Mr. McCormack asked the Minister for Finance his policy in relation to the enforcement of the rules of the stability pact; and if he will make a statement on the matter. [30157/03]
Written Answers. - Growth and Stability Pact.
Bernard J. Durkan
Question:149 Mr. Durkan asked the Minister for Finance if Ireland's position in relation to the Stability and Growth Pact has altered; and if he will make a statement on the matter. [30444/03]
I propose to take Questions Nos. 29 and 149 together.
Ireland supports the application of the rules of the Stability and Growth Pact, including the excessive deficit procedure which is laid down in article 104 of the treaty and clarified in Council Regulation No. 1467/97. In my view the rules contain an inherent flexibility, and it is appropriate that this flexibility be applied with common sense and consistency. Recent experience with France and Germany, both of which have excessive deficits at present, furnishes examples of the latter, flexible approach. In these cases, the Council has exercised its discretion under the treaty to refrain from issuing a formal notice, on the basis of a commitment from both countries to take action to correct their excessive deficits by 2005 at the latest.
At a more general level, the Government's position is that the fiscal discipline which the Stability and Growth Pact seeks to achieve has been productive for Ireland and good for Europe. We will continue to work prudently within the pact to achieve fiscal balance while meeting the needs of our economy.