THE political framework for monetary union would be finalised by the time of the Dublin summit in December, the Minister for Finance Mr Quinn said yesterday.
He added that the momentum was now such that the progress towards monetary union was "irreversible" and that he expected political agreement on all the outstanding issues to be reached by the time of the Dublin Summit in December.
The formal text would then be signed off in Amsterdam next June under the Dutch presidency, he added.
Speaking to The Irish Times from Berlin, Mr Quinn said the informal meeting of EU finance ministers in Dublin last weekend had achieved "more than anticipated" and that "conclusive and direct" answers had been provided for every question.
The questions centred on the three key issues - the stability pact, which will agree spending controls after monetary union; the new exchange rate mechanism for currencies not in the euro; and the legal issues surrounding the new currency, the euro.
There will be a "clear, textual outline of ERM II and the stability pact in December", according to Mr Quinn.
All 15 countries agreed on the need for a stability pact, to control member states economic policies after monetary union. They also agreed it should be similar to the convergence programme which will legislate for the behaviour of those countries which fail to make it into monetary union in the first round.
The discussion is now centring on the specifics of what the pact should encompass.
"There were comments on items like interest rates, inflation and unemployment" targets, according to the Minister.
Failure to meet certain targets, particularly on budget deficits, could result in a fine, except under "exceptional and temporary" circumstances. The exact definition of this get out clause, which would allow a country to escape a fine, has yet to be agreed. Most countries favour a "hard" definition with some numbers. The most likely solution will be a combination of numbers and circumstances, which a country would have to fit into, Mr Quinn said.
There is still some disagreement over the length of time a country would have to put its house in order before any fines become applicable. Greece and Britain are pressing for a 12 month gap, arguing that this is what their parliamentary timetables require.
The ministers also agreed that the European Central Bank would have far more power than the Bundesbank or EMI have today.
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