Dáil Éireann Debate, Thursday - 15 June 2023
194. Deputy Richard Bruton asked the Minister for Enterprise, Trade and Employment to outline the work that is being carried out at European level to strengthen competitiveness; and his views on its relevance to Ireland. [28955/23]
View answerIn March, the Commission published a communication ‘Long-term competitiveness of the EU: looking beyond 2030’ – which sets out the Commission’s Strategy on the competitiveness of the European Union. This was published alongside a communication reflecting on the ‘Single Market at 30’.
This Strategy on long-term competitiveness aims to secure ‘sustainable competitiveness’ for the EU beyond 2030. It seeks to achieve this through nine specific drivers: a functioning Single Market, access to private capital, public investment and infrastructure, research and innovation, energy, circularity, digitalisation, education and skills, trade and open strategic autonomy. Progress on these drivers will be gauged through 17 Key Performance Indicators which will be reported on through an updated Single Market and Competitiveness Scoreboard. The Scoreboard will become a key tool in monitoring the EU’s and Member States competitiveness on an annual basis.
Under the proposed process, from January 2024 – and then annually – the Commission will publish its Annual Single Market Scoreboard and an expanded Single Market and Competitiveness Scoreboard as a package. This will facilitate Competitiveness Council inputting in a more meaningful and comprehensive basis to the spring meeting of EUCO on competitiveness, the Single Market and industrial policy.
The long-term competitiveness strategy is of strong relevance to Ireland. The National Competitiveness and Productivity Council (NCPC) reports to the Taoiseach and the Government, through the Minister for Enterprise, Trade and Employment on key competitiveness issues facing the Irish economy and offers recommendations on policy actions required to enhance Ireland’s competitive position. In accordance with European Council recommendations, the NCPC has also been designated as Ireland’s National Productivity Board – the body responsible for analysing development and policies in the field of productivity and competitiveness in Ireland. Last month, the NCPC published Ireland Competitiveness Scorecard 2023. It shows that although Ireland’s current competitiveness position is quite strong there are, however, some important factors to be addressed. For instance, cost pressures and a failure to keep pace with infrastructural investments internationally have presented challenges to Ireland’s position. Ireland also falls below the EU average in terms of spending on R&D as a percentage of GNI* - a key indicator for innovation.
These areas are set out as key drivers of competitiveness within the EU’s long-term competitiveness strategy, and so will help Ireland work in tandem with the EU to improve its performance in these key competitiveness areas. Further to this, there is strong alignment between the EU’s long-term competitiveness strategy and Ireland’s recently published White Paper on Enterprise 2022-2030 regarding sustainable competitiveness. Both recognise the importance of increasing investment in R&D, of improving investment in and delivery of infrastructure, and the importance of progressing the twin green and digital transition. A strong performance on these drivers is critical to maintaining, and improving, Ireland’s international competitiveness position.
