Dáil Éireann - Volume 408 - 14 May, 1991

Written Answers. - EC Budget Deficits.

Mr. J. Bruton Mr. J. Bruton

795

60. Mr. J. Bruton asked the Minister for Finance his views on whether, in the context of economic and monetary union, there should be a ban on (1) the monetary financing of budget deficits by [795] member states and (2) excessive budget deficits by member states; and if he will make a statement on the matter.

Minister for Finance (Mr. A. Reynolds) Albert Reynolds

Minister for Finance (Mr. A. Reynolds): There is unanimous agreement among member states that budgetary discipline is of key importance if economic and monetary union is to function in a successful and stable way. This has been underlined in the report of the Delors' Committee on EMU and emphasised many times since by the ECO-FIN Council. It is reflected in the general agreement of the present Inter-Governmental Conference on EMU that certain requirements to ensure budgetary discipline should be inscribed in the new treaty. Among these are a prohibition on the monetary financing of budget deficits and on excessive deficits. These provisions are acceptable to Ireland.

Dáil Éireann 408 Written Answers. EC Budget Deficits.

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