Written answers

Thursday, 10 November 2016

Department of Finance

Stability and Growth Pact

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

85. To ask the Minister for Finance his views on the opinion expressed by the Dutch Minister of Finance and the chairman of the eurozone finance Ministers, Jeroen Dijsselbloem, that European Union finance Ministers are concerned that the European Commission is not applying budget laws in the same way to large and small countries and is undermining confidence in the rules; and if he will make a statement on the matter. [34095/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As I have indicated in a previous response to the Deputy's same question in June of this year, I am aware of Mr. Dijsselbloem's views on this matter. 

I am also on record as stating my firm belief that in order to engender confidence in EU fiscal rules, all Member States should be treated equally concerning the application of EU budget laws, regardless of their size.

In my statement on Tuesday November 8th to the Economic and Monetary Affairs Committee of European Parliament, I affirmed the importance of fiscal rules, particularly in the context of monetary union, emphasising their role in helping to prevent excessively pro-cyclical policy choices. In this statement, I also highlighted the lack of transparency and predictability that currently characterise the rules. Fiscal rules have become extremely complex and difficult to communicate publicly. Moreover, predictability as to how compliance assessment will be performed is lacking.

I emphasised that although both democratic and political ownership of the fiscal rules in Ireland is strong, a robust defence of the benefit of such rules is becoming progressively more difficult, in particular where the perception arises that rules are being applied differently for small and large Member States. It is essential that these rules are applied fairly and in a sensible and predictable manner.

Nevertheless, my fellow Finance Ministers and I are of a shared view that a certain degree of flexibility within the rules of the Stability and Growth Pact is both necessary and should be permitted in certain limited circumstances to better align with country-specific economic circumstances and investment needs. Whilst recent reforms on flexibility within the rules are welcome, work needs to continue in this area.

Comments

No comments

Log in or join to post a public comment.