Wednesday, 4 July 2012

Questions (67)

Micheál Martin

Question:

65 Deputy Micheál Martin asked the Minister for Finance his views whether the proposals of a fiscal union is practical; if he will be supporting same; and if he will make a statement on the matter. [30536/12]

View answer

Written answers (Question to Minister for Finance)

On June 25th, and in advance of the European Council on 28th/29th June, the President of the European Council published a report entitled Towards a Genuine Economic and Monetary Union. The report sets out a vision for the future of EMU and proposes to move, over the next decade, towards a stronger EMU architecture based on integrated frameworks for the financial sector, for budgetary matters and for economic policy.

In relation to budgetary matters, the report suggests that a qualitative move towards a fiscal union is needed to ensure the smooth functioning of the monetary union.

I have said on a number of occasions that improvements to the architecture of the euro area are needed to promote the smooth functioning of EMU.

That said, we must await the details of any specific proposals in order to formulate a definitive view. In this context, President Van Rompuy and his colleagues will present a more specific and time-bound map for the achievement of a genuine monetary union to the European Council in December, with an interim report being presented in October. In the interim I and my officials will engage in this process as appropriate.