Bernard J. Durkan
Ceist:129 Mr. Durkan asked the Minister for Finance if countries participating in EMU are willing to take the necessary action in the event of a raid on the euro; and if he will make a statement on the matter. [19625/98]
Written Answers. - Economic and Monetary Union.
The currency of the economic and monetary union (EMU), which will begin on 1 January 1999, will be the euro. Under article 105 of the EU Treaty, the European system of central banks is responsible for defining and implementing the monetary policy of the Community and for conducting foreign exchange operations in relation to the euro. Any action to defend the euro by way of interest rate changes or foreign exchange intervention would be a matter for the European central bank (ECB).
As far as the member states participating in EMU are concerned, the Treaty provides for the ECB to be provided with foreign reserve assets by the national central banks of euro-area member states. The ECB currently has foreign reserve assets equivalent to around Euro 40 billion. Further calls of foreign reserve assets may be effected by the ECB within the limits and under the conditions set by the Council of Ministers.