Fiscal Policy

Dáil Éireann Debate, Thursday - 10 May 2012

Thursday, 10 May 2012

Questions (56)

Stephen S. Donnelly

Question:

55 Deputy Stephen S. Donnelly asked the Minister for Finance further to Parliamentary Question No. 168 of 1 May 2012, regarding whether or not Ireland has an effective veto over the European Stability Mechanism Treaty due to the fact that Ireland has to ratify the amendment to Article 136 of the treaty, if he will confirm whether or not Ireland has a veto on Article 136; if he will explain if Ireland does not approve Article 136, the version of the Treaty that will come into force when ratified by signatories whose subscriptions represent 90% of the total initial subscriptions, specifically, will it be the Treaty as is, but without Article 136; and if he will make a statement on the matter. [23534/12]

Written answers

Minister for Finance (Deputy Michael Noonan)

Both instruments mentioned in the question — the European Stability Mechanism (ESM) and the proposed amendment to Article 136(3) of the Treaty of the Functioning of the European Union (TFEU) — are separate and contain their own requirements for entry into force. The ESM Treaty, was signed by Euro Area Member States on 2 February 2012 and this is the Treaty that will come into force when ratified by signatories whose subscriptions represent 90% of the total initial subscriptions. The target date for this is 1 July 2012. The Government considers that it is strongly in Ireland's best interests for the ESM Treaty to enter into force as soon as possible.

The amendment to Article 136 of the TFEU will enter into force when approved by all Member States of the EU, including Ireland, according to their national requirements. The target date for this to be done is 1 January 2013. The European Communities (Amendment) Bill 2012 will amend the European Communities Act 1972, in order to provide that the reference to the EU Treaties will include the amendment to be made to Article 136(3). The amendment provision in the Bill will only be commenced when the Article 136(3) amendment comes into force.

A decision not to approve the amendment of Article 136 will not prevent the ESM Treaty from entering into force once the necessary conditions are met.