Seán Haughey
Ceist:153 Mr. Haughey asked the Minister for Finance if he is committed to keeping interest rates at a low level; the measures he is taking to achieve this; and if he will make a statement on the matter. [28211/03]
Written Answers. - Economic and Monetary Union.
Under economic and monetary union, EMU, monetary policy is now set to meet the requirements of the euro area as a whole. The European Central Bank, ECB, in carrying out the tasks of the European system of central banks set out in the EU treaty, is responsible for monetary policy in the euro area and for conducting foreign exchange operations for the euro. The determination of policy on interest rates in the euro area is a matter for the governing council of the ECB.
The ECB is independent in setting monetary policy. This independence is explicitly guaranteed by the EU treaty which provides that neither the ECB nor a national central bank nor any member of their decision-making bodies shall seek or take instructions from any other body. I therefore have no role in the setting of interest rates.
The EU treaty is clear that the primary objective of the ECB is the maintenance of price stability and, without prejudice to this objective, that it is to support the general economic policies of the Community. It sets its interest rates accordingly.