Tuesday, 19 July 2011

Ceisteanna (96)

Brendan Griffin

Ceist:

107 Deputy Brendan Griffin asked the Minister for Finance if he has a contingency plan in the event of a requirement for the State to rely on our own currency. [20996/11]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Minister for Finance)

As the Deputy will be aware, the focus of Government is to work with our partners in the euro area and the broader EU to maintain and enhance the stability of the euro. This is also the aim and intention of the wider international community including the IMF. Our actions support this. Financial support measures were put in place for Greece, and the European Financial Stabilisation Mechanism (the EFSM), the European Financial Stability Facility (the EFSF) were established. The permanent stability facility — the European Stability Mechanism — was agreed at the European Council. In addition to this, economic governance in the euro area has been enhanced with measures such as the Euro Plus pact. The European semester, for budgetary and economic policy monitoring and coordination, is already in operation.

A further significant step that all member states are taking is to ensure and enhance fiscal sustainability. That is why difficult decisions are being taken right across Europe by responsible Governments. Restoring growth potential and improving the public finances is the way forward.

As the Deputy will be aware, a meeting of Euro Area Heads of State and Government has been arranged for 21 July to discuss the latest developments and the appropriate response.

All these measures are concrete evidence of the determination of the Euro Area members to protect the currency, and also of their willingness and ability to do so. It is in the nature of modern economies and financial systems that difficulties will arise from time to time. The appropriate response to such difficulties is to take the measures necessary to defend an institution that has served its members — the euro area member states, including Ireland — very well. This is the approach that all major economies take: they defend their currency and do not abandon it at the first sign of difficulty.