Dáil Éireann díospóireacht -
Thursday, 30 May 1996

Vol. 466 No. 3

Written Answers. - Economic and Monetary Union.

Ivor Callely

Ceist:

55 Mr. Callely asked the Minister for Finance the EU member states that are supportive of the move to the third stage of economic and monetary union; the timescale for the introduction of the Euro; and if he will make a statement on the matter. [11281/96]

Minister for Finance (Mr. Quinn)

In Madrid in December 1995, the European Council agreed a reference scenario, or timetable, for the transition to the single currency, the Euro. Briefly, in early 1998, the European Council will decide which member states qualify to participate in the third stage of economic and monetary union (EMU) on the basis of their performance in 1997; the third stage will commence on 1 January 1999, when the Euro will come into being and the exchange rates of the currencies of participating member states will be locked irrevocably against it and against each other; Euro notes and coins will be introduced into circulation by January 2002 at the latest; and the national currencies of participating member states will cease to be legal tender by 1 July 2002 at the latest.

The Treaty on European Union defines the activities of the member states and the European Community as including the irrevocable fixing of exchange rates leading to the introduction of a single currency and contains the provisions relating to European Monetary Union. However, Protocols to the Treaty make special provision for the United Kingdom and Denmark. The UK Government indicated some time ago that the UK would not participate in the third stage of European Monetary Union if it commenced in 1997. The UK Government has not ruled out UK participation in the third stage from 1 January 1999, but has indicated that a decision about it will be made closer to that date. I understand that a referendum will be required in Denmark if it is to proceed to the third stage of European Monetary Union.