Dáil Éireann Debate, Wednesday - 3 October 2012
71. Deputy Micheál Martin asked the Minister for Finance the actions that will be taken, following decisions made at the EU Council meeting in June, regarding growth and job creation; and if he will make a statement on the matter. [33235/12]
View answer74. Deputy Peadar Tóibín asked the Minister for Finance his understanding of the additional resources for jobs creation arising from recent EU meetings of Ministers. [33871/12]
View answer75. Deputy Peadar Tóibín asked the Minister for Finance if he will outline proposals for increasing job creation arising from the EU Council Ministers [33872/12]
View answerI propose to take Questions Nos. 71, 74 and 75 together.
Heads of State or Government in the EU decided on a compact for growth and jobs at the European Council on 28 June. This involves action by Member States and at EU level in order to boost growth, investment and employment. Measures to be implemented at national level include the full implementation of the country-specific recommendations from the European Semester as well as pursuing differentiated growth-friendly fiscal consolidation. From an Irish perspective, I want to assure the Deputy that the required consolidation over the next few years will be pursued in as growth-friendly a manner as possible. A number of measures are to be implemented at EU level in order to boost growth, and I believe the cumulative impact of all of these measures will have a positive impact in terms of supporting economic activity in the EU at this difficult juncture. This, in turn, can be expected to benefit Ireland, given the importance of the EU as a trading partner.
At EU level, the measures announced include a deepening of the Single Market and reducing the regulatory burden. Another important measure is the mobilisation of EUR120 billion - about 1 per cent of EU gross national income - to boost European growth. These funds will be made available via EU structural funds, the Project Bonds initiative, and EIB lending. We continue to make progress in terms of maximising the amount of funding that can be made available to Ireland in these regards. Constituting part of these efforts is a EUR10 billion paid-in capital increase for the European Investment Bank, which increases the lending capacity of the Bank by about one-third. This is of particular interest to Ireland because the Bank has been an important source of funding. Funds received in the past already have been substantial, covering commercial semi-states, local authorities, road projects (PPPs) and loans to banks for on-lending to SMEs. The Exchequer can also borrow directly from the EIB in respect of capital projects such as school-building. For instance, a EUR 100m loan was agreed with the EIB for the purpose of building 550 classrooms across Ireland on 6 July. Other examples of projects currently under appraisal include funding up to EUR 200m for the improvement of water infrastructure and funding up to EUR 200m for use in SME and mid-cap investment via AIB.
Further, on 6 July, EIB President Werner Hoyer visited Dublin and met myself and Minister Howlin in order to discuss how Ireland can best work together with the EIB, notably developing flexible and innovative funding solutions to invest in infrastructure and key sectors of the economy. We had a very constructive discussion and remain actively and constructively engaged with the EIB on these and related matters, including at the time of the informal Ecofin in Nicosia mid-September.
