Pearse Doherty (Donegal South West, Sinn Fein)
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21. To ask the Minister for Finance if he supports the reported calls from France and Italy for greater flexibility in the way the EU’s fiscal targets can be met. [28488/14]

Michael Noonan (Limerick City, Fine Gael)
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There has been much commentary in recent weeks in relation to the fiscal rules governing EU Member States. While not proposing a change in the Stability and Growth Pact rules - that is,  limiting general government deficits to 3 per cent of GDP and gross public debt to 60 percent of GDP - some Member States, including France and Italy, are seeking greater flexibility in the interpretation of the rules.

In this regard, I would like to reiterate the Taoiseach's comments made last week on the margins of the European Council meeting. We have been very clear about our commitment to achieving our target of a deficit below 3 per cent of GDP by 2015. This has not changed and we will achieve this target. In relation to increased flexibility in the interpretation of the rules, we would be supportive of 'flexibility' that would enable public investment for the creation of job opportunities, boost potential growth and ultimately enhance the sustainability of the public finances.

At the European Council meeting on 26 and 27 June, it was noted that, given the persistently high debt and unemployment levels, the challenges associated with an ageing society and supporting job creation, fiscal consolidation must continue in a growth-friendly and differentiated manner. The conclusions further stated that "structural reforms that enhance growth and improve fiscal sustainability should be given particular attention, including through an appropriate assessment of fiscal measures and structural reforms, while making best use of the flexibility that is built into the existing Stability and Growth Pact rules". In this context, it was agreed that the European Commission will report to the European Parliament and to the Council on the application of the EU governance framework by 14 December 2014. I welcome this review and look forward to its conclusions.