Lucinda Creighton (Dublin South East, Fine Gael)
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Question 12: To ask the Minister for Finance the flexibility, in view of his discussions with EU Commission at the last ECOFIN, that is allowed to Ireland to breach the 3% borrowing limit in 2009; the period within which he is required to bring borrowing back within limits; and if he will make a statement on the matter. [31475/08]

Ruairi Quinn (Dublin South East, Labour)
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Question 15: To ask the Minister for Finance the schedule of discussions and negotiations between himself or his Department and the relevant EU authorities with respect to the Stability and Growth Pact and specifically to a possible excessive deficit procedure arising from either the 2009 or 2010 budgets; and if he will make a statement on the matter. [31333/08]

Ruairi Quinn (Dublin South East, Labour)
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Question 26: To ask the Minister for Finance if he will make a statement on the discussions which took place with other European Finance Ministers in Nice regarding the Stability and Growth Pact; if specific reference was made during these discussions to the prospect of Ireland breaching the 3% deficit limit; and the outcome of these decisions and the expected consequences of Ireland breaching the 3% limit during 2008 or 2009. [31332/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 12, 15 and 26 together.

In their discussion of Member States' response to the current economic slowdown at the recent informal Ecofin meeting and in so far as budgetary policy is concerned, Ministers noted the supportive role of the Stability and Growth Pact, its emphasis on reducing deficits and the importance of compliance with the Pact. The question of a possible breach by Ireland of the 3% of GDP deficit limit was not discussed at the informal Ecofin. I did, however, take the opportunity at the Eurogroup meeting to provide my colleagues with a general update of the position in Ireland. I also had an informal meeting with Commissioner Almunia on the margins of the informal Ecofin, during which I provided him with a general update on the position in Ireland. He confirmed that the Commission would, as is the norm, assess the position after it receives the fiscal notification that Ireland, like all other Member States, will be submitting to Eurostat at the end of September.

As regards measures related to the Stability and Growth Pact, Ireland's stability programme update which will include projections for the general government balance for 2009 to 2011 will be published with the Budget on October 14th. The update is due to be examined by the Economic and Financial Committee of Ecofin (the EFC) in late January 2009. The stability programme is among those on which the Ecofin Council is expected to adopt a Council Opinion at its February 2009 meeting.

As regards the operation of the excessive deficit procedure, the position is that in accordance with Article 104 of the EU Treaty the Commission prepares a report if a Member State exceeds the 3% deficit limit or if the Commission is of the opinion that there is a risk of an excesssive deficit . This procedure, the timing of which is a matter for the Commission authorities, normally leads to a Council recommendation designed to encourage the Member State concerned to take steps to correct the deficit. The Pact provides that where special circumstances exist in the economic and budgetary position this may be taken into account in setting the initial deadline for correction of an excessive deficit.