Written answers

Thursday, 10 November 2016

Photo of Tommy BroughanTommy Broughan (Dublin Bay North, Independent)
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115. To ask the Minister for Finance the process whereby budget 2017 is scrutinised by the EU institutions; if the Finance Bill 2016 is subject to similar scrutiny; if he will report on any official EU reactions to the budget and Finance Bill; and if he will make a statement on the matter. [34220/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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All euro area Member States are required to submit their draft budgetary plans for the coming year to the European Commission by mid-October (Member States in a programme are exempt from this process). This is required under Regulation (EU) No 473/2013 of the European Parliament and of the Council of 21 May 2013 on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the Member States in the euro area. Draft budgetary plans have to be submitted in a common format.

Ireland's Draft Budgetary Plan for 2017 was submitted to the European Commission on 17 October in line with requirements.

The Commission assesses the plans for all euro area Member States as to whether they are compliant with the requirements of the Stability and Growth Pact. Where the Commission identifies particular issues and risks in the submitted draft budgetary plans, it is required to consult with the Member State concerned within a week of receipt before taking further action. This year, the Commission issued letters to seven Member States. Ireland was not one of these Member States.

Under the legislation, the Commission is required to issue its opinion on the draft budgetary plans by 30 November. The opinion generally grades the draft budgetary plans as being compliant, partially compliant, or at risk of non-compliance. The Commission's opinions are normally issued ahead of the deadline - the opinions are currently expected to be published in mid-November.

Regarding the Finance Bill, this is not submitted to the European Commission as it is the domestic legislation that gives effect to the taxation measures announced as part of the Budget. Any measures that may require approval from the Commission under State aid rules are subject to a commencement order pending approval from the Commission. Likewise, the Estimates to be voted on by the Dáil and the Social Welfare Bill are not submitted to the European Commission.

In terms of reporting, I would point out that the Commission's assessment of Ireland's Draft Budgetary Plan will, of course, be made public and I will comment accordingly.

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