Michael Creed (Cork North West, Fine Gael)
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Question 337: To ask the Minister for Foreign Affairs his views on the likelihood of a new EU constitutional treaty to facilitate putting the [i]ad hoc[/i] fiscal stability fund agreed in June 2010 on a permanent basis, and to also facilitate the development of an orderly insolvency procedure in the eurozone, and to allow for sanctions against member states who are in excessive deficit; and if he will make a statement on the matter. [39645/10]

Micheál Martin (Cork South Central, Fianna Fail)
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The report of the Task Force on economic governance chaired by President Herman van Rompuy covers issues of increased fiscal discipline and of a permanent crisis mechanism. These matters were also the subject of a statement on 18 October made by President Sarkozy and Chancellor Merkel when they met in Deauville. The European Council meeting of 28-29 October considered these matters in depth. The Taoiseach participated in these deliberations.

The European Council endorsed the report of the Task Force and called for rapid adoption of legislation to implement its recommendations. These include inter alia measures to provide for sanctions against member states in the excessive deficit procedure. The European Council agreed on the need for the member states to establish a permanent crisis mechanism. It invited the President of the European Council to undertake consultations on a limited treaty change to give effect to this, while specifying that article 125 of the Treaty on Functioning of the EU (the "no bail-out" clause) should not be modified in the process.

The Commission is to undertake preparatory work on the general features of a new mechanism including the role of the private sector, the role of the IMF and the very strong conditionality that would apply to associated programmes. The European Council is to return to the matter in December with a view to taking a decision on treaty amendment so that a change can be ratified by mid-2013 at the latest. It is intended that the change to the Treaty be limited, and it would not give rise to a new EU Constitutional Treaty.