Terence Flanagan (Dublin North East, Fine Gael)
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Question 60: To ask the Minister for Finance the source of the document that led to a budget plan 2012 leak to the German Parliament; and if he will make a statement on the matter. [36529/11]

Michael Noonan (Limerick City, Fine Gael)
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I wish to make clear that I and my colleagues in Government are deeply concerned that this draft confidential information has become public before Government had finally made all of the necessary budgetary decisions. Furthermore, we are concerned at the manner in which this information was put into the public domain. As the Deputy will be well aware, we are in a programme of financial support with the EU and the IMF. As part of this programme, we are obliged to share information with the EU Commission, the ECB and the IMF – the External Partners. Such information is shared on a confidential basis with the understanding that its circulation is restricted. As such, certain draft technical information which is clearly signalled as being still subject to Government decisions is transmitted to the External Partners. This information flow is part of the necessary transmission of information which is required to facilitate discussions amongst senior officials at Eurogroup Working Group level.

Following each review mission by the external partners, the Irish authorities agree updated programme documents, specifically the Letters of Intent, the Memorandum of Understanding on Specific Economic Policy Conditionality, the Memorandum of Economic and Financial Policies and the Technical Memorandum of Understanding. These are discussed between the partners and authorities in draft format before being signed and published.

Each review considers both the performance against targets to date and progress in relation to future commitments. A key concern at all stages of the process is the sustainability of the fiscal position. In that context, the external partners requested information about Ireland's next steps, specifically measures to be introduced in the Budget. While the Government agreed to provide broad outlines in October, it was also explained that the final shape of the budget would not be known until budget day.

While the overall scale of adjustment required each year out to 2015 was published in the Government's Medium Term Fiscal Strategy, the External Partners sought further specific information to facilitate approval of the review and thus the next draw-down of funds under the programme. It was in this context that the Departments of Finance and Public Expenditure and Reform provided some additional data on budgetary options on the understanding that this was for internal troika use as well as for background briefing by the Commission to the EuroGroup Working Group and the Economic and Financial Committee only. This information was marked both draft and confidential and was contained within square brackets in the text – which is the normal way of showing that the relevant text remains to be finalised and subject to further decision making. On many occasions during the troika review mission and since then, we highlighted that such material was indicative and had to be agreed by Government before the documents could be finalised.

As I understand it, and notwithstanding the strict confidentiality applied to the material supplied to the troika, this information was sent by Commission staff to the German Finance Ministry. It was then forwarded by them to their Parliament. Neither Government nor the Irish officials were informed that this transmission of confidential budgetary documentation would take place. Further, that this occurred before the information was agreed by Government and then provided to the Oireachtas serves only to heighten our concerns. Since becoming aware of the leak and the internal Commission process that they have in place we have raised our serious concerns with the Commission and also with the German authorities.

In conclusion, I will repeat that the Government did not approve the transmission of this information to the German Parliament, and that I and my Government colleagues are very concerned at this development. We must nevertheless recognise that we remain in a programme and continue to rely on the support of the External Partners. In expressing our concern, we need also to continue working with our partners. Last night, I laid the relevant draft documents before the Houses of the Oireachtas, in order to make the information available to all.