Kieran O'Donnell (Limerick East, Fine Gael)
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Question 73: To ask the Minister for Finance if the EU has expressed a view on the maximum borrowing levels before penalty clauses might apply to Ireland under the stability pact. [19081/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Article 104 of the Treaty governs the operation of the excessive deficit procedure of the Stability and Growth Pact. On foot of Ireland's deficit figures for 2008 the Ecofin Council made a recommendation to Ireland. This is part of the normal operation of the Pact whenever the General Government Deficit of a Member State exceeds the reference value of 3% of GDP as did that of Ireland and of a number of other Member States in 2008.

The Council recommendation invites Ireland to reduce the deficit below the 3% of GDP reference limit by end 2013. This is in line with the Government's budgetary strategy. As is normal in these circumstances, I have been in regular contact with the Commission and I have briefed my European colleagues with regard to the position of the public finances in Ireland.

Council recommendations are intended to support and encourage the Member State concerned in its pursuit of necessary, if difficult, budgetary measures to reduce the deficit below 3% of GDP in an agreed timeframe while taking account of economic circumstances.

The European Commission has welcomed Ireland's consolidation strategy including the recent supplementary Budget of the 7th April. It has also been welcomed by Eurogroup.

We are continuing to work with the Commission and our European colleagues on this and other matters and as such the question of penalty clauses does not arise.