Micheál Martin (Cork South Central, Fianna Fail)
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Question 203: To ask the Minister for Finance his views that the recent EU treaty will actually deal with the substantive debt crisis in the EU, particularly with the most recent developments in Greece; and if he will make a statement on the matter. [6386/12]

Michael Noonan (Limerick City, Fine Gael)
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One of the key objectives of the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union is to ensure that the public finances in participating Member States remain on a sustainable path in order to safeguard the stability of the euro area and the EU as a whole. Within a monetary union, the scope for spillovers from inappropriate policies in one participating Member State to another Member State is not insignificant, as is clearly evident from the current crisis. In this regard, Member States agreeing to run a balanced budgetary position over the economic cycle and to reduce public indebtedness over time, are, broadly speaking, appropriate instruments for public policy.

Respecting the requirements of the Treaty together with full implementation of the previously agreed five-point action plan will undoubtedly result in greater stability in the monetary union. A key action point in the five-point plan is resolving the Greek situation; the other measures involve recapitalising the European banking system, building of firewalls to prevent contagion, addressing the situation of vulnerable Member States and improved governance.

In relation to Greece, clearly the situation is difficult. However, on Monday night, taking account of the significant efforts made by Greece, euro area Finance Ministers reached agreement on a policy package that constitutes the basis for a successor Programme. Furthermore, euro area Ministers reiterated their commitment to provide adequate support to Greece during the life of the Programme and beyond until it has regained market access, provided that Greece fully complies with the requirements and objectives of the adjustment Programme.