Micheál Martin (Cork South Central, Fianna Fail)
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Question 256: To ask the Minister for Finance his views regarding the volatility in the markets following various political developments in Netherlands, France and Germany; if the Fiscal treaty will improve matters; and if he will make a statement on the matter. [21527/12]

Michael Noonan (Limerick City, Fine Gael)
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Since the international financial crisis began we have seen periods of intense market volatility as well as periods of relative calm. In recent weeks, mainly on foot of political developments in a number of countries, we have seen increased uncertainty regarding the future direction of policy in the euro area and this is reflected in market developments. Clearly there are lots of moving parts at the moment and I believe that, while unfortunate, continued market volatility can be expected until some of the key issues are resolved. In this regard, developments at the Heads of State or Government level have an important role to play in terms of enhancing confidence and stability in the euro area and the preparatory meeting of Heads tomorrow and the formal European Council meeting in June will be key.

I would also point out that a number of important institutional reforms and policy measures are being implemented in order to address the situation, including the so-called six-pack of legislative reforms and the five-point strategy agreed by euro area Heads of State or Government last October. In this context, the Treaty on Stability, Co-ordination and Governance in the Economic and Monetary Union also has a positive role to play by inter alia creating certainty and stability.