Written Answers. - Economic and Monetary Union.
Seamus Brennan
Ceist:
22
Mr. S. Brennan
asked the
Minister for Finance
if he will ensure that the issue of the single currency under economic and monetary union is on the agenda at the European Council meeting in Dublin on 13 December 1996.
[19533/96]
Martin Cullen
Ceist:
58
Mr. Cullen
asked the
Minister for Finance
the current progress towards economic and monetary union under the Irish Presidency of the EU; his views on whether the target dates will be met; and if he will make a statement on the matter.
[16719/96]
Seamus Brennan
Ceist:
65
Mr. S. Brennan
asked the
Minister for Finance
the Government's position on economic and monetary union and the single currency issue in view of its overall national and historic significance; and if he will make a statement on the matter.
[18679/96]
I propose to take Questions Nos. 22, 58 and 65 together.
As regards the Government's policy on economic and monetary union (EMU), the Treaty on European Union signed at Maastricht in February 1992 commits the European Union to move to the third stage of economic and monetary union no later than 1 January 1999. Deputy Brennan will recall that Ireland did not seek an opt-out from participation in economic and monetary union in the negotiations preceding the Treaty. The Deputy will further recall that a referendum was held on the Treaty in June 1992 and that almost 70 per cent of those who voted in it endorsed acceptance of the Treaty.
I can assure Deputy Brennan that preparations for the third stage of economic and monetary union will be an important item on the agenda for the European Council in Dublin in December.
As I indicated in my response to a priority question today from Deputy McCreevy, when I took up office as President of the ECOFIN Council, I set out the priorities in the economic and monetary union area in accordance with the mandates given to ECOFIN by the Madrid and Florence European Councils. Effectively, these require ECOFIN and, in their respective fields of competence, the European Commission and the European Monetary Institute, to present conclusions to the Dublin European Council in December 1996 showing further substantive progress towards ensuring a smooth transition of economic and monetary union. Three areas are involved.
The first concerns strengthening budgetary discipline in stage three of economic and monetary union among member states that adopt the euro. This work follows from the Treaty provisions in relation to the avoidance of excessive deficits, and the specific proposals made by Germany last year for a "stability pact" to operate among member states in economic and monetary union. The second involves study of the range of issues, particularly in the monetary policy area raised by the fact that not all member states will adopt the euro from the outset. The third is the legal framework for the use of the euro.
Very satisfactory progress has been made on all three areas so far during our Presidency. In Dublin in September I hosted an informal meeting of EU Finance Ministers and Central Bank Governors to review progress and to chart the course to the December European Council. This meeting ensured that we are well on our way to achieving our objectives.
This was reflected last month when the Commission adopted legislative proposals on the stability pact and on the legal framework for the euro, as well as a draft communication to Council on the relationship between participating and non-participating member states.
Early next month ECOFIN will finalise reports for presentation to the European Council which will show substantive progress on the three areas I have outlined. Many key elements of the stability pact have been agreed and I expect further progress to be made before the end of the year. Details of the new ERM are almost settled, although the details cannot of course be finalised until the European Central Bank is set up in 1998. Work on other aspects of the relationship between participating and non-participating member states is ongoing in the context of improving multilateral surveillance and the legal framework for the euro is at an advanced stage.
As regards deadlines, the December 1995 Madrid European Council decided that the third stage of economic and monetary union would commence on 1 January 1999. This was confirmed by the Florence European Council in June and will be reaffirmed by the December European Council in Dublin.
