A roadmap for deeper euro zone integration by the leaders of main European institutions raises “enormous questions” for Ireland, a Government MEP will say today.
Brian Hayes of Fine Gael, former minister of state for finance, will tell a Dublin conference that there has been no debate in Government or within the political parties on the “five presidents’ report” from the leaders of the EU Commission, the euro group of finance ministers, the European Council, the European Central Bank and the European Parliament.
“While some of the measures within the report centre around existing plans to complete banking union, such as potentially a European deposit insurance scheme, there are radical proposals around establishing a euro area treasury into the future,” he will tell the Irish Association of Corporate Treasurers.
“Should wage rates within the euro area be referenced by a euro area set of rules?
“What’s the role of national and EU parliaments in implementing measures to reduce imbalances between euro area member states?
“How do we strengthen the role of the euro group and demand of it the kind of parliamentary accountability that it currently lacks?
“What is the role of taxation and the allocation of budgetary expenditure?”
Ireland should think about what it wanted from this process, he will say.
“We cannot be passive bystanders – we are member of the euro group and that demands that we think out what exactly we need. We need to build coalitions with other euro and non-euro area member states now on the substance of what might be coming down the tracks.
“Notwithstanding the result of the upcoming UK referendum, we along with other euro area member states have a responsibility to complete the project of European monetary union.”
This is the best means to increasing prosperity, he will say. “Without that necessary reform of the euro, Europe will go backwards, and the progress made could well be put at risk.”
The new order in the euro zone meant that sanctions can be applied to any member state if it constantly flouted the rules regardless of size “even if you are ... France or Italy”.
A new understanding of investment and prudent long-term investment was also required.
“While the Germans are right about the new rules underlying the European economy, they are wrong about the rules for investment – especially in those counties like our own that have seen a reduction of over 20 per cent in investment.”
