Dáil Éireann Debate, Tuesday - 21 May 2013
298. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which economic fundamentals have stabilised or improved through each EU member state, eurozone and non-eurozone, in each of the past three years to date; the extent to which this country continues to meet its targets in this regard; and if he will make a statement on the matter. [24393/13]
View answerEconomic activity in most EU Member States has been relatively subdued over the past year or so. This reflects inter alia the effect on demand of private sector deleveraging, fiscal consolidation and poor confidence. For the EU as a whole and for the euro area, economic weakness is projected to continue this year, with GDP projected to contract by 0.1 and 0.4 per cent respectively. Within the euro area, GDP is forecast to decline this year in eight of the Member States. The European Commission is anticipating a modest recovering of the EU economy in the second half of the year, with the recovery gaining momentum next year.
In relation to targets, I am assuming the Deputy is referring to the fiscal targets set under the excessive deficit procedure. In this regard, some Member States may miss the deadline for correcting their excessive deficits due to the weaker economic environment. I would point out, however, that there is scope to extend the deadline for correction in circumstances where the headline deficit is affected by weaker-than-expected growth. These matters will be dealt with by EU Finance Ministers in the coming months.
