Vol. 408 No. 4
60 Mr. J. Bruton asked the Minister for Finance his views on whether, in the context of economic and monetary union, there should be a ban on (1) the monetary financing of budget deficits by member states and (2) excessive budget deficits by member states; and if he will make a statement on the matter.
There is unanimous agreement among member states that budgetary discipline is of key importance if economic and monetary union is to function in a successful and stable way. This has been underlined in the report of the Delors' Committee on EMU and emphasised many times since by the ECO-FIN Council. It is reflected in the general agreement of the present Inter-Governmental Conference on EMU that certain requirements to ensure budgetary discipline should be inscribed in the new treaty. Among these are a prohibition on the monetary financing of budget deficits and on excessive deficits. These provisions are acceptable to Ireland.
