Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Question 38: To ask the Minister for Finance the progress being made to finalise the work on the Commission's six legislative proposals on economic governance; the progress made in implementing the recommendations of the task force; the progress in putting together the National Reform and Stability Programme required by the European Council; and if he will make a statement on the matter. [5410/11]

Michael Noonan (Limerick City, Fine Gael)
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The Commission published legislative proposals in September 2010, following its Communications earlier in 2010 on strengthening budgetary discipline and introducing new procedures to prevent the occurrence of harmful macro-economic imbalances and excessive divergences in competitiveness in the euro area. The Commission's proposals have been under consideration by a Council working group which has taken account also of the parallel recommendations of the Van Rompuy Task Force on economic governance which reported last autumn.

I understand that tomorrow's European Council is expected to adopt conclusions on the proposals. This will form a basis for discussion with the European Parliament with a view to implementation of agreed changes thereafter. The main aspects of the proposals relate to prudent fiscal policy making, greater emphasis on debt levels, prevention of macro-economic imbalances and strengthening of national fiscal frameworks in line with the Stability and Growth Pact. In the context of the euro area, there is also provision for financial sanctions in the event of persistent non-compliance with Council recommendations.

In line with the arrangements which have been agreed in the context of the new European Semester, a draft National Reform Programme (NRP) was submitted to the European Commission in December 2010. The NRP is currently being finalised and along with a Stability Programme Update will be submitted to Government for approval in the coming weeks. These programmes are due to be submitted to the European Commission by the end of April. The European Semester aims to allow for a simultaneous assessment of both budgetary measures (Stability Programme) and structural reforms (National Reform Programme) fostering growth and employment so that better account is taken of the EU and euro area dimensions when countries prepare budgets and economic reform programmes.