Wednesday, 20 November 2019

Questions (95)

Thomas P. Broughan

Question:

95. Deputy Thomas P. Broughan asked the Minister for Finance his plans to meet the new chief of the IMF and the new President of the European Central Bank (details supplied); and if he will make a statement on the matter. [48270/19]

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Written answers (Question to Finance)

As the Deputy will be aware Ms Kristalina Georgieva was selected Managing Director of the International Monetary Fund (IMF) on 25 September 2019 and assumed her position on 1 October 1, 2019. I briefly met Ms Georgieva shortly thereafter during my visit to Washington DC from 16-19 October to attend the Annual Meetings of World Bank/IMF.

This short meeting did not have a formal agenda. I took the opportunity to congratulate Ms Georgieva on her appointment and wish her well in her new and challenging role. I used the opportunity to brief her on developments in the Irish economy and the outlook for the period ahead. Our discussions also touched on EU and international economic and financial developments. The new IMF MD spoke about the main priorities of her tenure . During the course of this meeting I also invited Ms Georgieva to visit Ireland and while no visit has yet been scheduled, my officials are liaising with the IMF to make the necessary arrangements.

As the Deputy will also be aware, Christine Lagarde was appointed as President of the European Central Bank (ECB) on 18 October 2019, and she took up duty on 1 November 2019. As part of my ongoing international engagements, I will meet with President Lagarde in Frankfurt later this month. In any discussions with Madame Lagarde, or other officials of the ECB, I will, of course, be mindful and respectful of the ECB’s independence.

The ECB's mandate is to maintain price stability in the euro area. The Central Bank of Ireland contributes to the formulation of monetary policy at Eurosystem level, and the Bank’s Annual Report provides further details of this contribution.

The Treaty on the Functioning of the European Union prohibits the ECB from seeking or taking instructions from EU institutions or bodies, from any government of an EU Member State, or from any other body. These requirements are set out in Article 130 of the Treaty and ensure that the principle of central bank independence is respected and there is no influence on the members of the ECB’s decision-making bodies.