Lucinda Creighton (Dublin South East, Fine Gael)
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Question 79: To ask the Minister for Finance the discussions he has had with the European Finance Ministers regarding the future of the single European currency; and if he will make a statement on the matter. [45788/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I attend meetings of the Eurogroup and Ecofin, which comprise the Finance Ministers of the Euro area and the EU respectively, together with the European Commission and the European Central Bank (ECB). It is a priority of the Eurogroup, ECOFIN and the European Council (EC) to ensure the financial stability of the Euro area and the EU as a whole. I can assure the Deputy that the supportive actions taken by the members of the Eurogroup, ECOFIN and the European Council are directed towards achieving this aim. The Eurogroup and ECOFIN agenda have focused on the impacts of the financial and economic crises for the economies of Euro area members, with the objective of ensuring the long-term stability of the euro. The Eurogroup and Ecofin have at all times acted decisively in response to changing global economic and financial market developments to support members experiencing financial difficulties.

In May of this year EU Finance Ministers unanimously agreed to activate stability support to Greece following a request for support from the Greek Government. The Eurogroup decided that a more comprehensive package of financial support measures was needed and established two assistance programmes, the European Financial Stabilisation Mechanism and the European Financial Stability Facility to financially support Member States in difficulties caused by exceptional circumstances beyond Member States' control.

In parallel with the above measures, and following agreement at European Council level, Eurogroup and ECOFIN have worked closely with the Van Rompuy Taskforce to reinforce economic policy coordination, initially through strengthening the Stability and Growth Pact and on developing a framework for identifying and correcting macroeconomic imbalances. On 28 - 29 October the European Council agreed on the need to set up a permanent mechanism to safeguard the financial stability of the euro area as a whole. At their meeting on Sunday 28th November Eurogroup Ministers agreed that this European Stability Mechanism (ESM) will be based on the European Financial Stability Facility and be capable of providing financial assistance packages to euro area Member States under strict conditionality and functioning according to the rules of the current EFSF.

The economic and fiscal situations of member states experiencing concerted pressure in the financial markets are discussed on the basis of assessments by the European Commission and contributions from the individual Ministers. This is a constructive discussion setting out the risks and challenges facing each euro area member and the necessary policy responses which are being considered by Ministers to counteract the severe pressures they are experiencing. The European Commission has endorsed Ireland's 4-year National Recovery plan for the period 2011 - 2014. I believe that the targets set out in the plan are achievable and provide a strong basis for enabling us to meet our commitments with regard to compliance with the terms of the Stability & Growth Pact. You will be aware that following an application by Ireland for external assistance, a joint programme of financial assistance by Europe and the IMF has been agreed for Ireland and was unanimously approved by Eurogroup and ECOFIN Ministers last weekend. The drawdown of this financial support is conditional upon our continuing to meet the expenditure and revenue targets set out in the plan. At last weekend's meetings Eurogroup and ECOFIN also decided upon a one year extension of our excessive deficit procedure to 2015, an immediate strengthening and comprehensive overhaul of the banking system and growth enhancing reforms, in particular in the labour market, to allow a return to robust and sustainable growth.

In conclusion, I believe it is clear that throughout the current crisis, euro area Member States have demonstrated their determination to take decisive and coordinated action to safeguard financial stability in the euro area as a whole, and I am confident that this will continue to be the case.