Vol. 449 No. 7
20 Mr. McCreevy asked the Minister for Finance the Government's position with regard to EU monetary union; his views on whether 1997 is a realistic date; if 1999 is the preferred option for monetary union; and if he will make a statement on the matter. [4421/95]
The Government supports the creation of economic and monetary union (EMU) in accordance with the timetable in the Treaty on European Union. The programme for renewal makes clear the Government's commitment to ensuring that Ireland continues to meet the fiscal conditions set out in the treaty for participation in Economic and Monetary Union. My recent budget was in line with this commitment.
The treaty sets out a timetable for movement to the third stage of Economic and Monetary Union. 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. It is as yet too early to say whether a majority of member states will meet the necessary conditions in time to enable Economic and Monetary Union to be formed in 1997.
Would the Minister think it a good idea to publish a White Paper or a discussion document on this subject so that we could have a wide ranging debate? What is his view on the probability of Ireland becoming a member of the Economic and Monetary Union without the UK and the consequences of that? My questions are interlinked because that would be one of the major points in any discussion document.
I welcome the Deputy's suggestion of a discussion document on these issues. They are of enormous significance for the Irish economy. The interrelated issue of sterling's future inside or outside the single currency is in the first instance a matter for the UK authorities but clearly it will be of considerable concern to Ireland in terms of North-South relations as well as relations with our nearest trading neighbour.I will certainly consider the Deputy's suggestion of a discussion document.
At this stage only two countries of the original Twelve are on track for participation in the Economic and Monetary Union in 1997, Ireland and Luxembourg.It is speculative to try to anticipate in advance what other countries will be in that position in 1997.
Even though 1999 is a number of years into the future, the logistics of planning for this change will take a considerable time and I urge the Minister to consider having a discussion document in place as quickly as possible because there will be differing opinions among those in the financial community and in the political parties and I think it would be as well to have them all on record. It appears the majority is agreed in principle to this course but it will be far from easy to operate it and I think the Minister should set about this task.
I will consider the Deputy's proposal but I would not like anyone in this House to have the impression that work of a preparatory nature is not currently being undertaken either by the Commission or my Department. We are full participants in the economic monitoring committee under the chairmanship of Cees Maas, a Dutch national who is examining the complex technicalities surrounding the conversion of at least seven, if not more, national currencies into a single currency. The House will recall that it took the United Kingdom and Irish authorities about five years to prepare for decimalisation without any change to the currency. The conversion of at least seven, and hopefully more, currencies into a system where every slot machine and cash transaction point is anticipated and accommodated is a task of immense complexity. We are currently participating fully in that work.
