Bernard Durkan (Kildare North, Fine Gael)
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Question 73: To ask the Minister for Finance if he is satisfied that sufficient steps have been taken to ensure that all member states in the EU are fully committed to the EU project, with particular reference to compliance with Stability and Growth Pact guidelines; and if he will make a statement on the matter. [43527/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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2057I assume the Deputy is referring to the outcome of the work carried out by the Van Rompuy Task Force. In March 2010, in the light of the global economic and financial crisis and the deterioration in public finances across the EU, the European Council mandated a Task Force under President Van Rompuy and comprising representatives of the Member States, the European Commission and ECB to develop proposals for improved budgetary discipline. I represented Ireland on the Task Force.

The European Council on 28-29 October endorsed the Report of the Task Force which includes recommendations aimed at strengthening fiscal discipline and broadening the EU's surveillance of macroeconomic developments. In relation to compliance with the Stability and Growth Pact, the report proposes that a greater emphasis be placed on the debt criterion and that stronger enforcement measures be put in place. In the case of the euro area, financial sanctions could be imposed in the event that a Member State were to persistently fail to take action on foot of Council recommendations issued under the Pact. The report also calls for national budgetary frameworks to be strengthened to underpin Member States' EU obligations.

I consider that the Task Force recommendations are a major step forward in economic governance at EU level and are to be welcomed. The necessary work is now being put in train at EU level to implement the recommendations, many of which will require EU secondary legislation, in the light of discussion of the related legislative proposals from the European Commission.

As the Deputy will be aware, the Stability and Growth Pact provides the overall framework for Member States' budgetary policies. I would like to emphasise that notwithstanding the present difficult challenges the Government remains committed to pursuing budgetary and economic policies consistent with our EU obligations.

The Deputy may also be referring to media reports regarding Greece. I would draw the Deputy's attention in this regard to the statement issued following the meeting of Eurogroup Finance Ministers on 16 November 2010. The Eurogroup, the European Commission and the ECB welcomed the efforts undertaken by the Greek government to comply with the agreed adjustment programme and acknowledged that the required adjustment is broadly on track. The statement noted a recent report from Eurostat to the effect that there is however, as expected, a substantial revision in government deficit and debt data for 2009 which is expected to affect the 2010 deficit figures. In this regard, it welcomed the efforts by the Greek authorities to correct deficiencies in the administrative and accounting systems in parallel with improvements in the statistical system. The statement welcomed the strong commitment of the Greek government to undertake the required budgetary measures in the budget for 2011 and expressed confidence that the significant progress made during the course of this year will continue, allowing the consolidation of the Greek budget to remain on track.