Dáil Éireann Debate, Tuesday - 7 July 2015
124. Deputy Colm Keaveney asked the Minister for Finance if he considers capital controls within a monetary union to be consistent with an optimal currency zone, or even with a monetary union, that may not satisfy the conditions of an optimal currency zone; and if he will make a statement on the matter. [27131/15]
Amharc ar fhreagraThe free movement of capital is one of the key principles of the European Union.
Having said that, the European Commission has noted that capital controls may be introduced for overriding reasons of general public interest. It notes that 'such exceptions to the principle of the free movement of capital must be interpreted very strictly, and be non-discriminatory, as well as suitable and proportionate in light of the objective. This also means that capital controls must be applied for the shortest possible period'.
On 28 June, the Greek authorities announced their intention to declare a bank holiday until July 7 at the earliest and decided to impose temporary restrictions on capital flows. The Commission assessed that this measure is appropriate in view of the present unique and exceptional situation faced by the Greek financial sector.
The European Commission also confirmed that the introduction of capital controls by the Greek authorities is justified under the Treaty on the Functioning of the European Union, in light of the current circumstances in Greece and with the view to maintain financial stability.
