Bernard Durkan (Kildare North, Fine Gael)
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200. To ask the Minister for Finance the extent to which he continues to have discussions with his counterparts at EU level with a view to preventing an economic crash in the future; and if he will make a statement on the matter. [14231/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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As Minister for Finance, I attend the Economic and Financial Affairs Council of the European Union (ECOFIN) which is responsible for EU policy in areas including economic policy. I also attend meetings of the Eurogroup, where the ministers of the euro area member states discuss matters concerning their shared responsibilities related to the euro. The Eurogroup’s main task is to ensure close coordination of economic policies among the euro area member states and to promote conditions for stronger economic growth.

At both the ECOFIN and Eurogroup meetings, Ministers of the Member States work alongside the European Commission and the European Central Bank (ECB) to take stock of the latest economic situation in the EU and euro area, including on the risks to the European economy’s growth prospects.

The European Semester was initiated in response to the crisis in 2010. It provides a framework for coordination of economic policies across the European Union in which guidance is provided to Member States before they take policy decisions at national level. The guidance is provided in the context of the Stability and Growth Pact (SGP) and the Macroeconomic Imbalance Procedure (MIP). As part of the Semester process, the Commission makes country-specific recommendations to provide tailored policy guidance to each EU country on how to boost jobs and growth, while maintaining sound public finances. Following the economic crisis, budgetary surveillance was enhanced with the 'Six-Pack' and 'Two-Pack' regulations which seek to complement the European Semester through enhanced monitoring and surveillance of the fiscal policies of EU Member States.

The European economy is performing well with growth exceeding expectations in 2017. The latest estimates from Eurostat, the statistical office of the European Union, show that in 2017 the EU and euro area economies grew by 2.4 per cent and 2.3 per cent respectively. The upturn is increasingly broad-based across EU countries. The recovery has been supported by a number of factors including sound macroeconomic policies, strong business and consumer confidence and a gradual improvement in world trade.

The European Commission’s Autumn Economic Forecast 2017 highlights risks to the European economy as being broadly balanced. Downside risks relate to the process of the UK leaving the EU, global geopolitical instability and potentially tighter global financial conditions. While bank fragilities in the euro area have eased, low profitability and legacy issues (i.e. non-performing loans) remain a concern. Other economic challenges relate to potential changes to the international taxation and trading environments. On the upside, uncertainties have diminished, economic sentiment has improved and with the rebound outside Europe potentially leading to a stronger, more durable expansion in Europe.

Given the still high levels of unemployment and public and private debt across the EU, there are clearly no grounds for complacency. An appropriate balance of fiscal, monetary and structural reform policies are needed to ensure sustainable growth is maintained in Europe.