Mary Lou McDonald (Dublin Central, Sinn Fein)
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To ask the Minister for Finance the way the two pack discussed at ECOFIN will change the budgetary process here. [14067/13]

Michael Noonan (Limerick City, Fine Gael)
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The Irish Presidency of the Council of the EU has secured agreement on 20th February 2013, on behalf of euro area member countries, with the European Parliament and the European Commission, on two proposed regulations – the “two-pack”. It is expected that the measures will be formally adopted in May or June 2013. One of the proposals is on the monitoring and assessment of draft budgetary plans and on ensuring the correction of excessive deficits. The other is on the strengthening of economic and budgetary surveillance and sets out explicit rules for enhanced surveillance of countries experiencing or threatened with financial difficulties. The key requirements under the “two-pack” which impact our budgetary process are:

- The draft budget for central government and the main parameters of the draft budgets for all the other sub-sectors of the general government must be published by the 15th of October each year;

- The draft budget must be based on independent macroeconomic forecasts which are defined as forecasts produced or endorsed by an independent body; and

- The budget for the central government must be adopted or fixed upon and published by the 31st of December each year.

The potential impact of these provisions on the budgetary timeline and the budgetary process are being considered and discussed by my Department and the Department of Public Expenditure and Reform. Other relevant Departments, such as the Department of Environment, Community and Local Government in relation to the local government sub-sector of general government, are also being consulted. When this process is completed in the near future, the Minister for Public Expenditure and Reform and I will bring a Memorandum to Government setting out our proposals to meet the requirements I set out above.

Deputies should also be aware that the “two-pack” specifies that all euro area Member States, not in a macroeconomic adjustment programme, will be required to submit to the Commission and the Eurogroup and make public a draft budgetary plan, which is separate to the draft budget, no later than 15 October each year.

The draft budgetary plan, which will be in a harmonised format, will be assessed by the Commission, which shall adopt an opinion on it by the end of November. The draft regulation also provides that the Commission may request a revised draft budgetary plan in exceptional circumstances where it identifies particularly serious non-compliance with the budgetary obligations laid down in the Stability and Growth Pact.

I can assure the Deputy that all necessary action will be taken to ensure that Ireland complies with the new requirements.