Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context

Question 14: To ask the Minister for Finance his position on the introduction of euro bonds and greater fiscal integration among the eurozone member states following recent comments by European Commission President Jose Barroso; and if he will make a statement on the matter. [27621/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The economic crisis and the recent euro-area debt crisis highlighted deficiencies in the current EU economic governance system and illustrated that broader and enhanced surveillance of member states' fiscal and macroeconomic policies is required in order to ensure financial and economic stability within the Euro Area. In March of this year the European Commission proposed a comprehensive and coherent package of reforms called the "six pack" to strengthen existing tools and extend them for coordinating economic and fiscal policy in the EU. The Ecofin Council formally adopted these legislative measures at its meeting on 4 October 2011. A strengthened system of economic governance in the EU will be good for the EU as a whole, and for the individual Member States. Ireland is a strong supporter of the six-pack and the other measures that have already been put in place such as EU2020, the European Semester and the Euro Plus Pact. These measures when fully implemented will go a long way towards addressing the weaknesses in the previous European economic governance system.

The debate on enhancing economic governance in the euro area is developing further.

At the meeting on 21 July, the Eurozone leaders called on the President of the European Council, Herman Van Rompuy, in close consultation with the President of the Commission, José Manuel Barroso, and the President of the Eurogroup, Jean-Claude Juncker, to make concrete proposals by October on how to improve working methods and enhance crisis management in the Euro Area.

Ireland is supportive of the objective of enhancing the economic governance of the Euro Area. We will continue to welcome constructive proposals in this regard and I look forward to President Van Rompuy's further governance proposals.

Here in Ireland, as the Deputy may be aware, the Government is committed to significant reform of our Budgetary architecture including the recently-established independent Fiscal Advisory Council, medium-term expenditure planning and performance management.

In addition, the EU/IMF Programme of Financial Support contains commitments to introduce a Fiscal Responsibility Bill by the end of the year. Work is being advanced in relation to the Fiscal Responsibility Bill and it is intended that the commitment in relation to this will also be met before the end of the year.

The role of the Irish Fiscal Advisory Council is to provide an assessment of whether the Government is meeting its own stated targets and objectives. It is also charged with assessing the appropriateness and soundness of the Government's fiscal stance and macroeconomic projections as well as an assessment of the extent of compliance with fiscal rules.

On euro bonds, President Barroso has stated in his State of the Union speech to the European Parliament last week that he intends to offer proposals in the coming weeks for what he calls "Stability Bonds". He has stated that some of the options he will present could be implemented within the current Treaty, whereas fully-fledged Eurobonds would require Treaty change. As always, it is the Commission's prerogative as to what exact proposals they make; I am sure the Deputy will agree that it is prudent to wait and see the details of the proposals before finalising our position on the matter.