Micheál Martin (Cork South Central, Fianna Fail)
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134. To ask the Minister for Finance if he will report on the discussions at EU level regarding the European Monetary Fund; and his views regarding Chancellor Merkel's comments on same. [17683/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The European Commission published a package of measures on the Future of the Economic and Monetary Union on 6 December 2017. Among them was a proposal on the possible creation of an European Monetary Fund (EMF). This follows on from the Commission's Reflection Paper on the Deepening of the Economic and Monetary Union (EMU), which was published on 31 May 2017, as part of a series of reflection papers on the Future of Europe.

The Commission's proposal provides for the transformation of the intergovernmental ESM to an EMF which would be incorporated into the Union legal framework.

Following the Euro Summit, which took place on 15 December, Finance Ministers were mandated to work on Economic and Monetary Union, and in particular on completing the remaining elements of Banking Union and on the development of the ESM, in preparation for the June European Council. As the Deputy will be aware, discussions have been ongoing.

The ECOFIN Council/Eurogroup meetings since then have allowed me to discuss this concept with my European counterparts. I have contributed to a paper on EMU, alongside the Finance Ministers of Denmark, Estonia, Finland, Latvia, Lithuania, the Netherlands and Sweden. We see this as an important step.  It sets out a number of common values, including that “the ESM should be strengthened and possibly developed into a European Monetary Fund". While the ESM should have greater responsibility for the development and monitoring of financial assistance programmes, decision making should remain firmly in the hands of Member States and the current voting structure as fostered by its intergovernmental nature should be retained.  Work by Finance Ministers on this topic will continue over the coming months, to facilitate discussion by Heads of State or Government in June.