Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I do not propose to accept this amendment to add a new section 8 to the Bill. This amendment provides for the publication of a report outlining details on two separate matters: first, measures taken to ensure appropriate safeguards and separation between ESM co-operation with the EU Commission in the area of policy; and second, ESM engagement with private citizens. I will say a word about each in turn.

On the first matter, my understanding of the objective of the proposed amendment is to gain assurances via the proposed report that the new enhanced co-operation between the ESM and the Commission will comply and be consistent with EU law, in particular with measures adopted in the field of EU economic policy co-ordination. A key concern expressed by the Senator in her previous engagement on the Bill relates to the future role of the ESM. I appreciate her concerns and recognise it is clear that the content of conditionalities is directly linked to the measure of economic policy co-ordination under the SGP. As such, the space for autonomy of the ESM in this area is limited and its role must be predominantly related to its function as lender.

In defining the new role for the ESM, the euro area member states recognise there are limitations to the role of the ESM. In practice, the Commission's liaison with the ECB and the ESM would collaborate on the design and negotiation of policy conditionality. The ESM would contribute, from its perspective as a lender, to areas that are directly relevant to the beneficiary member states' financing needs and ability to repay the ESM, as well as the organisational and operational aspects of the funding of the member state to help to restore its financial situation. The latter task pertains to the operational organisation of the debt office, its management strategy and technical assistance.

In addition, it is important to note that the compatibility of the existing ESM treaty with the exercise of competencies of economic policy under the EU treaties has already been checked by the European Court of Justice, ECJ, in the Pringle case. In this judgment, the ECJ underlined the role of the Commission as the institution called to ensure consistency with EU law in the course of ESM operations. The new arrangements regarding the enhanced co-operation between the ESM and the Commission in the ESM treaty amending agreement have been carefully crafted to respect the parameters laid down by the Court of Justice. Given the ECJ recognises the Commission as the institution with responsibility for ensuring consistency, it is not appropriate for the Minister for Finance to publish a report regarding matters that are the responsibility of the European Commission.

On the second matter, the Senator proposes that I publish a report on ESM engagement with private citizens and investors within 12 months of the passing of the Act. However, in its annual report, the ESM details its funding and investor relations activities for the previous 12 months.I made this report accessible to the Oireachtas in accordance with my obligations under Article 30(5) of the ESM treaty. I am therefore satisfied the information the centre is seeking is available and will continue to do so each year in the ESM annual report. While I will not be accepting the amendment, I am happy to engage further with the Senator on the matter, especially on Report Stage.

If the Senator is specifically concerned about the new role of the ESM, I can assure her that in accordance with recital 11(a) of the amending agreement, the ESM's involvement in such negotiations can only be at the request of the member state in question. In addition, the ESM's involvement will be on an informal, non-binding, temporary and confidential basis.