Willie Penrose (Westmeath, Labour)
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Question 88: To ask the Minister for Finance his views on the need for reform of the Stability and Growth Pact; the progress made by finance ministers on this issue at their January 2005 meeting; when the process will be completed; and if he will make a statement on the matter. [2485/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The European Commission presented a formal communication on 3 September 2004 outlining a range of proposals for strengthening economic governance in the European Union and clarifying the implementation of the Stability and Growth pact. Since then, the issues involved have been the subject of detailed and wide-ranging discussions.

At the recent ECOFIN Council of 18 January 2005, ministers had a useful exchange of views on this matter, and made progress in identifying areas of common ground. In its conclusions, the council requested the economic and financial committee, EFC, to continue work on the following issues in light of the debate: consolidating the preventive part of the pact; improving implementation of the excessive deficit procedure, which is the corrective part of the pact; and improving governance.

The consideration of the issues involved is therefore ongoing. The Luxembourg Presidency of the EU has indicated its objective of achieving agreement on the matter by the European Council meeting in March 2005.

As regards Ireland's position, we are engaging fully with the ongoing discussions with a view to encouraging reforms which are in line with our economic priorities. For example, Ireland has long argued that countries with very low debt levels, and with clear investment needs, should not be unduly constrained from making the necessary resources available.