Dáil Éireann díospóireacht -
Tuesday, 19 Nov 1991

Vol. 413 No. 1

Written Answers. - Economic and Monetary Union.

John Bruton

Ceist:

51 Mr. J. Bruton asked the Minister for Finance if he will outline his views on each of the proposed penalties for noncompliance of EC recommendations in regard to budget deficit reduction contained in draft Article 104 B (10) of the Dutch draft Treaty on Economic and Monetary Union, namely (a) ineligibility for EIB currency, (b) requirement to make a deposit, (c) fines and (d) suspension of Structural Funds; and if Ireland has objected to any of those proposed penalties.

John Bruton

Ceist:

52 Mr. J. Bruton asked the Minister for Finance if he will outline his views on the proposal in draft Article 105 (4) of the Dutch draft Treaty on Economic and Monetary Union that only the proposed European Central Bank will have the right to authorise the issue of banknotes within member states.

John Bruton

Ceist:

53 Mr. J. Bruton asked the Minister for Finance if any additional legislation governing the Central Bank will be necessary in order to comply with the provision of Article 109C (2) of the Dutch draft Treaty on Economic and Monetary Union concerning independence of national central banks within the Economic and Monetary Union; and if he will make a statement on the matter.

John Bruton

Ceist:

54 Mr. J. Bruton asked the Minister for Finance whether in his view the decision on which countries comply with the conditions for adoption of a single EC currency should be taken by a qualified majority or by unanimity by the Council of Ministers under Article 109F (2) of the Dutch draft Economic and Monetary Union Treaty.

John Bruton

Ceist:

55 Mr. J. Bruton asked the Minister for Finance his views on the proposed criteria in the Dutch draft Economic and Monetary Union Treaty in regard to the conditions for the adoption of a single EC currency by a particular member state.

John Bruton

Ceist:

56 Mr. J. Bruton asked the Minister for Finance his views on the proposal in Article 109G (2) of the Dutch draft Economic and Monetary Union Treaty which would allow a member state to be exempted from participating in the third stage of Economic and Monetary Union; and if he will outline whether a decision by Britain to avail of the exemption could have any adverse consequences for Ireland.

John Bruton

Ceist:

57 Mr. J. Bruton asked the Minister for Finance when he expects Ireland will be able to fulfil the criteria on elimination of excessive deficits in the protocol to the Dutch draft Treaty for Economic and Monetary Union which would require member states to have a 60 per cent ratio of Government debt to gross domestic product in order to move to stage three of Economic and Monetary Union; and his views on whether this criterion is unduly severe for the purpose it is intended to secure.

John Bruton

Ceist:

58 Mr. J. Bruton asked the Minister for Finance if Ireland will accept the declaration on transition to stage three of Economic and Monetary Union appended the Dutch draft Treaty on European Monetary Union.

Minister for Finance (Mr. B. Ahern)

I propose to take Questions Nos. 51 to 58, inclusive, together.

Ireland's general position on economic and monetary union is well known. We support the adoption of a single currency and monetary policy throughout the Community and we are aware that this will entail the establishment of an independent central monetary institution committed to price stability, the co-ordination by the member states of their economic policies, the avoidance of excessive deficits and the adoption of procedures to ensure the rules governing economic and monetary union are complied with.

The detailed provisions are currently being discussed in the Inter-Governmental Conference on Economic and Monetary Union and the recent Dutch draft Treaty was prepared to assist that conference in the final stage of negotiations before the Maastricht European Council. The Dutch draft Treaty, which should be viewed only as a working document, is currently being considered line by line and all member states, including Ireland, are making an active contribution to those deliberations. In view of the fact that the negotiations are now at a very sensitive stage, it would not be appropriate for the Government to disclose their detailed views on specific aspects of its Dutch draft Treaty at this stage.

The general principles outlined above, including that of attempting to ensure equitable treatmentvis-à-vis all member states has governed, and will continue to govern, our specific negotiating strategy.