Dáil Éireann díospóireacht -
Tuesday, 28 Feb 1995

Vol. 449 No. 7

Written Answers. - Single European Currency.

Eric J. Byrne

Ceist:

29 Mr. E. Byrne asked the Minister for Finance the Government's policy with regard to the Maastricht proposal to move to a single currency by 1999 in view of the recent statement by the Governor of the Netherlands' Central Bank to the effect that Economic and Monetary Union need not involve an immediate move to a single currency; and if he will make a statement on the matter. [4380/95]

Noel Davern

Ceist:

41 Mr. Davern asked the Minister for Finance the preparations, if any, he plans for a single currency in 1997; and the adjustments, if any, he considers will be required. [3001/95]

Seamus Brennan

Ceist:

71 Mr. S. Brennan asked the Minister for Finance if he will indicate to the British Prime Minister Ireland's support for the Single European Currency initiative; and if he will seek to persuade the British authorities of the merits of the initiative for these islands. [4273/95]

Minister for Finance (Mr. Quinn)

I propose to take Questions Nos. 29, 41 and 71 together.

The Treaty on European Union sets out the timetable for movement to the third stage of economic and monetary union (EMU) and a single currency. Briefly, if a majority of member states meet the conditions, the third stage can begin in 1997, if a date for the start of the third stage has not been set by end-1997, the third stage will begin in 1999. At the starting date of the third stage, the Treaty says that the Council will adopt the conversion rates at which the currencies of participating member states will be irrevocably fixed and at which the ECU will be substituted for those currencies; the ECU will become a currency in its own right; and the council will take the other measures necessary for the rapid introduction of the ECU as the single currency of participating member states. It will be seen from this that the Treaty does not envisage an immediate move to a single currency, but rather a rapid one.

Ireland supports the creation of Economic and Monetary Union and the introduction of a single currency in accordance with the Treaty timetable. Clearly the length of the period between the start of the third stage and the introduction of a single currency will depend to some extent on technical factors such as the lead-in time for the production of currency notes and coins.

The introduction of a single currency will be the culmination of the process of Economic and Monetary Union. The main preparation required at this stage is to ensure that Ireland continues to meet the Treaty conditions for movement to Economic and Monetary Union. In this context, Deputies will be aware that Ireland and Luxembourg were judged not to have an excessive deficit as defined in the Treaty when the excessive deficit procedure was implemented in 1994 for the first time. A Programme of Renewal makes clear the Government's commitment to ensuring that Ireland continues to meet the fiscal conditions for participation in Economic and Monetary Union. My recent budget was in line with this commitment.Ireland through its membership of the Economic and Monetary Institute and the Economic and Monetary Committee has been involved in discussions at European level on the technical preparations for European Monetary Union and a single currency. At a later stage the results of this work will be considered at ECOFIN by EU Ministers for Finance and Economic Affairs.

Ireland's support for Economic and Monetary Union and the single currency were made clear to other member states, including the United Kingdom, at the time the Treaty on European Union was negotiated. At the ECOFIN Council on 20 February, I again made clear Ireland's support for European Monetary Union in the presence of ministerial colleagues from other member states, including the UK Chancellor.