Vol. 408 No. 8
6 Mr. Quinn asked the Minister for Finance if, in view of the importance of social cohesion in the EC in general and the peripheral regions in particular, he has any proposals to convene a meeting of EC peripheral Finance Ministers from Greece, Spain and Portugal with a view to developing and strengthening the input of regional and peripheral concerns in a co-ordinated way in the Intergovernmental Conference debate; and if he will make a statement on the matter.
17 Mr. M. Higgins asked the Minister for Finance if he proposes to issue a White Paper setting out the Government's position in relation to economic and monetary union following the report of the Intergovernmental Conference on this matter; and if he will make a statement on the matter.
36 Mr. M. Higgins asked the Minister for Finance if his attention has been-drawn to the public statements of the Spanish Government in relation to cohesion and the EC within the context of the Intergovernmental Conference; and if he will make a statement on the matter.
52 Mr. J. O'Keeffe asked the Minister for Finance whether he favours the Spanish proposals for the automatic transfer of resources from the wealthier to the less wealthy member states of the EC; and if he will make a statement on the matter.
I propose to take Questions Nos. 6, 17, 36 and 52 together.
The importance which Greece, Portugal, Spain and Ireland attach to the concept of economic and social cohesion is evidenced by the various proposals which each has presented in the context of the conferences on both political union and economic and monetary union. These proposals in turn have ensured that this issue has been put very firmly on the agenda of both conferences. So effective have they been that both the Commission and the Presidency have now been encouraged into putting their own proposals on the table.
Ireland led the debate since last January. To date, the discussion at ministerial level has been confined to the Political Union Conference. However, this matter will be discussed by Finance Ministers at our next Intergovernmental Conference.
Deputies will be aware, from previous statements which I have made in this House, that the Intergovernmental Conferences are also meeting at the level of personal representatives. Within this group, discussions are in train among the representatives of the less-developed member states about matters of mutual concern in this crucial area and I, myself, am also in regular contact with my colleagues from those member states. Deputies can, therefore, rest assured on this score.
With regard to the Spanish proposals in particular, I would say that they fit in very well with the framework which we have proposed. While the details of Spain's proposal for an Inter-State Compensation Fund have yet to be fleshed out, we certainly support the idea that the Community should move in the direction of the kind of redistributive mechanisms which are common within existing federations. In this, Deputies will recall that, in relation to the European Community, one of the policy objectives of the Programme for Economic and Social Progress is:
progressive extension of the role of the Community budget through the creation of a Community system of revenue and expenditure, inherent in which would be the fiscal equalisation mechanisms characteristic of all fully fledged political and economic unions.
Another aspect of the Spanish proposals which we would endorse is that advocating a change in the Community's revenue system to one which fully respects the principle of progressivity.
Economic and social cohesion is but one aspect of the current negotiations on economic and monetary union. There are other important issues relating to, for example, budgetary concerns and the impact of the establishment of a future European system of central banks. None of these issues has yet advanced to a stage where it would be helpful to circulate a White Paper.
I thank the Minister for his rather discursive reply. May I ask him if he proposes to invite his colleagues from Spain, Portugal and Greece to Dublin to discuss in public and therefore in a political way the position of peripheral countries in relation to the forthcoming Intergovernmental Conference and the prospects of achieving social cohesion?
In response to the Deputy's query I have spoken to the Ministers from the countries concerned on the margins of the last Intergovernmental Conference at the informal meeting of ECO-FIN at the weekend and I have since written to them requesting a formal meeting, but the venue is still left open. The Deputy can take it that we will be meeting. At the personal representative level, there is very close liaison between the member states concerned, that is, Spain, Portugal, Greece and Ireland, because we have a common interest, and the Deputy can take it that the issue is being pursued at that level also.
I am very glad to hear that. Can I take it that this will take on the dimension of a political initiative, similar to some of the Franco-German initiatives on European affairs, and attract a similar profile, and that it will be seen as four or five member states coming together to agree a position in advance on the issue of social cohesion?
It will certainly take on as much of a political dimension as we can possibly put into it because, as the Deputy and Members of the House will be aware, at the very start cohesion was not an issue that the Commission or President Delors wished to discuss at the EMU conference. Consequently, when we lodged our paper last January and others followed with proposals along similar lines, it finally forced the Commission to put the issue on the agenda and to come forward with proposals. At the recent informal meeting of. ECO-FIN, President Jacques Delors outlined for the first time his views as to the future developments of financing and expenditure beyond 1993, taking into account the issue of economic and social cohesion as well.
