Dáil Éireann Debate, Thursday - 12 February 2009
88 Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he and his EU colleagues can influence and improve the economic climate through the EU; and if he will make a statement on the matter. [5489/09]
View answerIn December 2008 the European Council endorsed Commission proposals for a European Economic Recovery Plan (EERP) involving a fiscal stimulus equivalent to approximately 1.5% of EU GDP, as part of the Community response to the economic and financial crisis. Depending on national circumstances, the support measures involve targeted, timely and temporary measures in the areas of public expenditure and taxation. It is acknowledged under the Plan that some Member States might not have any scope for additional action in view of their budget deficit levels and potential tax shortfalls. Finance Ministers will have a crucial role to play in implementing the Plan.
From the outset of the financial market difficulties in August 2007, EU Finance Ministers have taken a number of steps to address the difficulties in financial markets and Ireland has of course been a full participant in that work.
At the meeting of EU Finance Ministers on 7 October 2008 we agreed common principles to guide the actions of Member States aimed at preserving confidence and stability in financial markets. On 2 December 2008 European Finance Ministers reached political agreement on a number of legislative dossiers that will contribute to greater stability and improved supervision of the financial sector. Since then, EU Finance Ministers have been monitoring the position on a regular basis.
The actions in both these fiscal and financial areas should help improve the economic climate in the EU.
