Dan Boyle
Ceist:77 Mr. Boyle asked the Minister for Finance if he argued that action be taken against France and Germany for failure to adhere to the Stability and Growth Pact; and if he will make a statement on the matter. [25711/03]
Written Answers. - Stability and Growth Pact.
In January 2003, the Economic and Financial Affairs, ECOFIN, Council decided that there was an excessive deficit in Germany in 2002 and set a deadline of May 2003 for the German authorities to take corrective measures amounting to 1% of GDP. While corrective measures were taken, it now seems likely that Germany will again breach the 3% limit in both 2003 and 2004. The next steps in respect of the German excessive deficit will be discussed at future ECOFIN Council meetings.
The ECOFIN Council decided in June 2003 that there was an excessive deficit in France for the year 2002 and issued a recommendation which, inter alia, set a deadline of 3 October 2003 for France to take corrective action, with a view to correcting the excessive deficit by 2004. In its budget of 25 September 2003, the French Government announced certain measures, which would have the effect of correcting the excessive deficit by 2005. The next step in the excessive deficit procedure will involve an assessment by the Council of whether France has taken effective action, as required under the recommendation of June 2003, and of whether to issue a notice to France further specifying the measures it must take to ensure that the situation is addressed. The question of imposing financial sanctions against either France or Germany has not arisen for consideration by the Council.
My position on these matters is straightforward. The Government supports the pact as the basis for sound public finances in the EU. The rules of the pact have to be enforced properly. It is incumbent upon all member states to do all they can to live up to their obligations under the pact. Equally, the scope for flexibility within the pact should be availed of in cases where a member state is making earnest efforts to correct an excessive deficit. From our discussions at Council level I am satisfied that both France and Germany remain committed to meeting their obligations under the pact.