Dáil Éireann Debate, Wednesday - 18 April 2012
119 Deputy Micheál Martin asked the Minister for Finance his views on the recent European Commission report that shows that each country is showing a contraction of their economies; the way this will impact on job creation; and if he will make a statement on the matter. [11051/12]
View answerThis Government considers that the labour market represents its biggest challenge and accordingly is giving top priority to job protection, job creation and supporting the unemployed. In this regard, my colleague the Minister for Jobs, Enterprise and Innovation recently published an Action Plan on Jobs. The European Commission released its Interim Economic Forecast for the EU on 23 February 2012. While some economies are forecast to grow, the Commission believes that GDP will remain unchanged in 2012 in the EU as a whole while the euro area will undergo a mild recession with GDP falling by 0.3%.
Obviously, as a small open economy whose recovery is being driven by exports, Ireland will be affected by the weak growth outlook for Europe, though competitiveness improvements evidenced in recent years will provide some support. I would also point out that, as some of our exports are by their nature quite capital-intensive, the impact on employment levels of a slowdown in export growth will be more muted than would otherwise be the case.
Ireland's Stability Programme Update, which will contain updated economic and budgetary forecasts for the period 2012-15, will be published at the end of April. The aforementioned developments in our main trading partners, along with other information that has become available since Budget time, will inform these forecasts.
120 Deputy Micheál Martin asked the Minister for Finance his views on the developments in Greece and its restructuring; his views that the delays in resolving the situation are preventing European leaders from concentrating on growth and job creation; his views on the action needed to resolve the situation; and if he will make a statement on the matter. [10584/12]
View answerConsiderable progress has been made in respect of Greece over the last number of weeks. For instance, its public debt has been restructured and a new programme of external financial assistance has been agreed. Putting Greece on a sustainable path is a key part of addressing the euro area crisis, and I do not agree that focusing on Greece has prevented European leaders from concentrating on growth and employment. This is evidence from the fact that an agenda for growth was agreed at the same time as the Stability Treaty — this is no accident and Ireland was among those seeking to ensure that the growth agenda moved in parallel.
Last year, a five-point strategy was agreed at European level in order to help resolve the euro area crisis, involving inter alia addressing the problems in the European banking system and tackling difficulties in individual Member States. It is my view that we need to vigorously implement this agreed approach to ensure that we continue to build on the progress made at European level over recent months.
