Oireachtas Joint and Select Committees

Tuesday, 6 December 2016

Committee on Budgetary Oversight

EU Directorate-General Economic and Financial Affairs: Discussion

5:00 pm

Mr. Carlos Martínez Mongay:

As I said, in this communication, the Commission distinguishes between three types of countries. The first type is countries that have reached the medium-term objective or have overachieved the medium-term objective, implying also that their debt levels are low. In the communication and in its proposal for a recommendation for economic policies in the euro area, the Commission recommends that these countries should use the fiscal space to support aggregate domestic demand. For countries which have not yet reached the medium-term objective, the Commission says that these countries should be broadly compliant, which is the case for Ireland. For the countries that are still in the corrective, which means that they still have an excessive deficit, such as France, Spain and Portugal, the Commission says that they should first reduce the excessive deficit. That is what the Commission communication says. There is another aspect which-----

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