Dáil Éireann Debate, Wednesday - 18 April 2012
11 Deputy Peadar Tóibín asked the Minister for Finance when the ESM Bill will be published and the reason he agreed to last minute amendments to the Treaty establishing the ESM linking ratification of the Treaty on Stability Coordination and Governance to ESM funds. [19312/12]
View answerIn relation to publication, the Taoiseach has given a commitment that legislative measures associated with the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (Stability Treaty) will be made publicly available in advance of the referendum. While a decision has yet to be taken on the publication date for the ESM Treaty ratification Bill it will be consistent with this commitment.
The European Stability Mechanism (ESM) Treaty was signed by all Euro Area Member States on 2 February, subject to ratification. It provides "that the granting of financial assistance in the framework of new programmes under the ESM will be conditional, as of 1 March 2013, on the ratification of the Stability Treaty by the ESM Member concerned" and on implementation of the balanced budget rule as specified in the Stability Treaty within the agreed timeline (one year after entry into force of the latter).
This reflects the outcome of discussions in which Ireland participated actively and constructively. The linkage between the ESM and Stability Treaty ratification was accepted in the interests of securing agreement on the ESM and its acceleration into force by July 2012. In the negotiations, the Government sought to ensure that it was made clear that the link between ratification of the Stability Treaty and the ESM Treaty applied only to new applications for assistance under the ESM, and that it will not affect the transfer to the ESM of undisbursed amounts under the European Financial Stability Facility (EFSF) for Ireland and other programme countries. The Government also sought to ensure that sufficient time was provided for ratification of the Stability Treaty before the link enters into effect.
While the Government did not actively seek to include the link between the two Treaties, it did suggest that before creating any such link that careful consideration be given to any possible market implications. However, it is entirely logical and reasonable that a country receiving the support of its partners under the ESM should be prepared to run sensible budgetary policies as required under the new Treaty.
