I propose to take Questions Nos. 106, 108 and 109 together.
When agreement was reached in December to put in place new arrangements to enhance the stability of the euro area, Ireland made clear its preference for proceeding within the EU Treaties, and with the involvement of all 27 Member States. This did not prove possible, so it was agreed to proceed with a separate Treaty among those wishing to participate. Agreement on these new arrangements — set out in the "Treaty on Stability, Coordination and Governance in the Economic and Monetary Union"— was reached at the end of January.
While the arrangements are not part of the EU Treaties, Article 2 makes it clear that the new Treaty "shall be applied and interpreted by the Contracting Parties in conformity with the Treaties on which the European Union is founded". Furthermore, the new Treaty shall apply only "insofar as it is compatible with the Treaties on which the European Union is founded and with European Union law". This is an important provision that the Government argued for and strongly supports.
What is more, Article 16 of the new Treaty provides that "within five years, at most" of the new Treaty entering into force "the necessary steps shall be taken ... with the aim of incorporating the substance of this Treaty into the legal framework of the European Union". Again, this is a most welcome provision and the Government hopes that such incorporation can take place at as early a date as possible.
While the new Treaty is not part of the EU Treaties, many of its provisions are already found in EU Treaties or law, including within the Stability and Growth Pact, as strengthened by the six legislative measures adopted last year — the so-called "six-pack".