The report on the implementation of the 2000 broad economic policy guidelines offers an overall assessment by the European Commission of the implementation of last year's guidelines by member states in 2000. The guidelines for each mem ber state relate to public finances and labour, product and capital markets.
The comments on Ireland in the report were broadly favourable. For example, it noted that Irish product markets are generally characterised by a high degree of competition and that Ireland has the highest share of ICT production to total production in the EU. This reflects the presence of many research-intensive foreign-owned firms. In relation to inflation, the report stated that as the influence of special factors unwind, the outlook is for a "gentle decline" in the inflation rate.
As regards the national development plan, the report notes that the plan "aims to ease capacity constraints through increased investment in physical infrastructure and human capital". The report does note however that "given the overriding need to safeguard economic stability and the capacity constraints currently experienced in the construction sector, which lead to increasing implementation costs, there is a strong case for deferring less urgent projects".
At the most recent meeting of the Council of European Finance Ministers on 12 March, I made the point that in seeking to better co-ordinate European economic policy we should not rule out reform measures especially where their structural benefits would appear to outweigh any procyclical impact. In my view, the national development plan projects generally are clear examples.
Question No. 74 answered with Question No. 66.
