Written answers

Tuesday, 28 February 2017

Department of Finance

Stability and Growth Pact

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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193. To ask the Minister for Finance his views on the recent comments made by the Dutch Minister for 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. [9933/17]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware and as stated in Parliamentary Question Number 295 of 17/01/2017 I would like to again reassert my belief in the importance of the principle of the fiscal rules, which are designed to promote budgetary discipline and underpin sustainable economic growth. Fiscal rules are all-the-more important in a monetary union, given the scope for spillovers among participating Member States.

Compliance with the fiscal rules underpins and facilitates the goals of sustainability and economic growth. Ireland's recent and continued economic recovery is testament to this. 

It is evidently important that rules are implemented in a fair and consistent manner and that all Member States are treated equally concerning the application of the Stability and Growth Pact. This is essential for the continued credibility of these rules. Any perception that the rules are not being applied in an equitable manner could result in the undermining of the Stability and Growth Pact.  

In Ireland we have defended and complied with the fiscal rules through difficult times. This defence becomes progressively more difficult if there is any suggestion that the rules are not being applied consistently, particularly when there are perceived differences between the treatment of small and large Member States. So I would have some sympathy with the view of Chairman Dijsselbloem that unequal application could undermine confidence in the rules and, in this regard, I would reiterate that the fiscal rules must be applied in a transparent, consistent and fair manner.

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