Vol. 501 No. 2
26 Mr. Ring asked the Minister for Finance if he has satisfied himself with the euro-dollar exchange rate; his views on whether the euro will continue to weaken against sterling; the advantages and disadvantages for the economy arising from a stronger sterling; and if he will make a statement on the matter. [5337/99]
261 Mr. Callely asked the Minister for Finance the success of EMU in the initial trading weeks; if there have been any noticeable issues of concern; and if he will make a statement on the matter. [5518/99]
268 Mr. Durkan asked the Minister for Finance the extent to which he and his EU colleagues are monitoring the progress of the euro; and if he will make a statement on the matter. [5714/99]
270 Mr. Durkan asked the Minister for Finance if he and his EU counterparts have identified a strategy in the event of a substantial fall in the value of the euro against other currencies; and if he will make a statement on the matter. [5716/99]
I propose to take Questions Nos. 26, 261, 268 and 270 together.
The third stage of Economic and Monetary Union – EMU – commenced on 1 January 1999. Ireland was one of 11 European Union member states which adopted the single currency, the euro. The irrevocably fixed conversion rate between the euro and the Irish pound was set at 1 euro = 78.7564 Irish pence.
Under the Treaty on European Union, the European Central Bank, in carrying out the tasks of the European System of Central Banks, is independent in its setting of monetary policy. This independence, which is explicitly guaranteed by the treaty, is essential for the attainment of the primary objective of the ECB of the maintenance of price stability.
The treaty also provides that the Council of Ministers may formulate ‘general orientations' for exchange rate policy in relation to the euro, without prejudice to the ESCB's primary objective to maintain price stability. It should be noted, however, that as was agreed by the Ministers for Finance at their ECOFIN meeting in Luxembourg, in December, 1997, such general orientations should only be given in exceptional circumstances.
Prior to the adoption of the euro, as Minister for Finance, I did not comment on the Irish pound exchange rate and I do not now propose to make any comment on the euro exchange rates.
