Michael Moynihan (Cork North West, Fianna Fail)
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82. To ask the Minister for Finance if he will report on the discussions at the June 2019 ECOFIN meeting on the reformed eurozone budget plan and the possibility of a fiscal stabilisation tool on same as requested by President Macron; the response it received; and the actions being taken in this regard. [27981/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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At a meeting of the Eurogroup in inclusive formation on 13 June, my Euro area colleagues and I agreed on a term sheet that outlines the general principles and features of a budgetary instrument for competitiveness and convergence. Its aim is to support reform and investment projects that strengthen competitiveness and convergence in the euro area. We also agreed that the size of financial envelope for the instrument would not be determined until it is discussed within the context of discussions on the financial envelope of the wider Multiannual Financial Framework.

Following this meeting, the Taoiseach, and Leaders of the other euro area Member States, participated in the Euro Summit on 21 June, as part of the European Council. The Euro Summit assessed the term sheet which had been agreed, and directed Finance Ministers to agree the remaining elements, particularly the financing, as quickly as possible. Finance Ministers have not discussed the possibility of fiscal stabilisation this year. A budgetary instrument for competitiveness and convergence was further discussed at the recent Informal Finance Ministers' Council meeting in Helsinki. Discussions are ongoing.

Michael Moynihan (Cork North West, Fianna Fail)
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83. To ask the Minister for Finance if there was clarity or a decision taken following the June 2019 ECOFIN meeting regarding the intention of Italy to avoid falling into an EU disciplinary process. [28210/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the ECOFIN meeting on 14^thJune the discussion on the European Commission’s assessment of the compliance of Member States with the Stability Growth Pact (SGP), specifically for Belgium, Cyprus, France and Italy, was deferred to a future meeting.

On 2^ndJuly Italy wrote to the European Commission setting out its updated projections for the public finances in 2019, advising the Commission of the expenditure-control measures being introduced and the commitment for the new Italian 2019 fiscal policy and 2020 Draft Budgetary Plan (DBP) to achieve broad compliance with the SGP.

On 3^rdJuly the European Commission noted that the Italian response was sufficient at this stage to avert the opening of an Excessive Deficit Procedure for Italy in respect of its 2018 outturn.

Further, the European Commission committed to closely monitor the implementation of Italy’s Budget for 2019 and to assess the compliance of its 2020 DBP with the fiscal rules when submitted.