Mary Upton (Dublin South Central, Labour)
Link to this: Individually | In context

Question 82: To ask the Minister for Finance his views on proposals to set up a permanent successor fund to the European Financial Stability Facility; if he expects that conditionalities attached to any such fund would necessitate amendments to the Lisbon treaty; and if he will make a statement on the matter. [41650/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Report of the Van Rompuy Task Force, on which I represented Ireland, was endorsed by the European Council meeting of 28-29 October 2010. The Report concluded that in the light of the Greek crisis that a more robust framework is needed for crisis management, notwithstanding the establishment of the European Financial Stability Facility which was put in place earlier this year and covers the period to mid-2013. The Task Force outlined various aspects of a permanent crisis resolution framework and concluded that further work is needed on its setting up including consideration of possible Treaty change. I support this work in the context of safeguarding the financial stability of the euro area as a whole. The European Council has asked President Van Rompuy to undertake consultations with Member States on the question of limited treaty change and to report back in December. The European Commission in consultation with President Van Rompuy will undertake preparatory work on the general features of a new mechanism. The Council propose to consider the matter further at its December meeting with a view to a limited treaty amendment so that any change can be ratified by mid-2013 at the latest.

There is an opportunity now on foot of the initial consideration by the Task Force to reflect on appropriate arrangements for the future, building on the experience gained with the European Financial Stability Facility, and to take a more considered approach to what is required of a permanent mechanism.

When President Van Rompuy has completed his consultations, he will bring forward a detailed proposal setting out what is required. Until this proposal is finalised, it is not possible to conclude whether it will necessitate amendments to the EU Treaties and if so what will be needed to enable Ireland to ratify the new arrangements. However, I can assure the House that whatever legal steps are necessary and appropriate will be followed. I would emphasise though that what is being proposed at present is a very targeted and limited exercise. It is worth recalling here that the Treaties contain various approaches to Treaty change, including the 'Simplified Revision Procedures'. This approach provides for situations where it is agreed that some change is needed within particular policy areas of the Treaties but where the competences conferred on the Union by the Member States are not being increased.

No decision was taken at the recent European Council on which approach should apply in this case. However, the Council conclusions emphasised the limited nature of what is being proposed.