Dáil Éireann díospóireacht -
Tuesday, 28 Feb 1995

Vol. 449 No. 7

Written Answers. - Single European Currency.

Noel Davern

Ceist:

52 Mr. Davern asked the Minister for Finance if he will make a statement on the report in the Irish Independent on 2 February 1995, quoting a senior French Government source as stating that only seven countries including Germany, France, Holland, Belgium, Luxembourg, Austria and Finland would meet the criteria for a single European currency.[2852/95]

Minister for Finance (Mr. Quinn)

I have seen the newspaper report referred to by the Deputy. I note that the source quoted in it was suggesting that only seven member states meeting the criteria would be needed to form the majority required for economic and monetary union (EMU) to proceed in 1997, since the United Kingdom and Denmark could be excluded from the 15 member states for this purpose as they have secured opt-outs from the Economic and Monetary Union provisions of the Treaty on European Union. I also note that a later newspaper report stated that this interpretation was speedily rejected by the President of France.

As the Deputy will be aware, the procedure for deciding on movement in 1997 to Economic and Monetary Union and a single currency is laid down in the Treaty. This provides that the decision will be made by the European Council before 31 December 1996 after it has consulted the European Parliament. The European Council will be acting on the findings of the Council of Economic and Finance Ministers (ECOFIN), which itself will be acting on a recommendation from the European Commission.The Treaty requires the Commission to assess for each member state whether it fulfils the Treaty conditions for the adoption of a single currency and whether a majority of member states meet these conditions. It is therefore these institutions, and not an anonymous source, which will make the decision on movement to Economic and Monetary Union and a single currency.I would add that in view of the number of institutions involved in making the decision and the time which must elapse before it is made, it is obviously impossible at this stage to predict the outcome of the deliberations of these institutions.

As regards the member states which currently meet the criteria, I would recall for the Deputy that when the excessive deficit procedure was operated last year for the first time, only two member states, Ireland and Luxembourg, were judged to have satisfied the budgetary performance criteria. Under the Programme for Renewal, the Government is committed to ensuring that Ireland will continue to meet the budgetary performance criteria in the Treaty. My recent budget was in line with this commitment.