Michael Noonan (Limerick City, Fine Gael)
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The financial crisis and subsequent euro area debt crisis exposed flaws in the design of economic and monetary union.  Broadly speaking, the policy response has centred around retro-fitting the monetary union with the tools to make it operate more efficiently and ensure that the benefits of the single currency are fully realised.

In particular, the economic governance framework of the EU and especially of the euro area has been strengthened significantly.  Economic policies of the Member States are more closely coordinated through the annual European Semester cycle.  Legislative reforms within the so-called 'six-pack' have enhanced the Stability and Growth Pact in order to ensure sound public finances across the EU and euro area.  These legislative changes have also seen the introduction of the macro-economic imbalances procedure which inter alia is designed to avoid economic spill-overs between Member States.

Additional legislative changes in the so-called 'two-pack' introduced a new system of budgetary coordination and enhanced surveillance for euro area Member States emerging from financial assistance programmes and those at risk of or experiencing financial instability. The reforms introduced by the 'two-pack' and 'six-pack' were also underpinned by the 2012 Stability Treaty.

It is also important to stress that considerable progress has been made towards a pan-European Banking Union with considerable progress made during Ireland's Presidency of the Council of the European Union while a substantial firewall (the European Stability Mechanism) has been created.  The existence of a banking union will help participating Member States, including Ireland, avoid and where necessary respond more efficiently to any future economic shocks.

So we are now in a much better place and I would point out that Ireland has fully participated in the European Semester since last year, having exited the EU/IMF programme of financial assistance at the end of 2013.  From an Irish perspective, we are doing our bit to ensure stability in the euro area our public finances have been put on a more stable footing and we are reducing macroeconomic imbalances.  This is positive from a euro area perspective but also from an Irish perspective.

Finally, it is worth noting that a further discussion on the future of the euro area economic and fiscal framework will be included in the forthcoming 'Four Presidents' report.