Bernard J. Durkan
Ceist:45 Mr. Durkan asked the Minister for Finance his proposals to encourage economic growth; and if he will make a statement on the matter. [25863/03]
Written Answers. - Economic Policy.
Bernard J. Durkan
Ceist:106 Mr. Durkan asked the Minister for Finance his plans to stimulate economic growth; and if he will make a statement on the matter. [26003/03]
I propose to take Questions Nos. 45 and 106 together.
This Government has established a climate which has allowed the Irish economy to flourish. In the decade up to 2001, Ireland achieved one of the best economic performances in the world.
In the last 18 months, growth in Ireland has slowed, mainly due to the prolonged slowdown in the international economy. However, indicators show that a recovery, particularly in the US, has begun.
The challenge now is to pursue policies which will safeguard Ireland's competitiveness so as to ensure we will benefit fully from the international economic recovery as it develops. In assessing our economic prospects going forward we must deal with the realities of the current economic environment and in this regard, there are a number of key facts that we must both acknowledge and respond to. First, Ireland is part of a monetary union where the overriding policy objective is for a low inflation environment of about 2% or less per annum. Second, international competition is exerting downward pressure on goods prices and is likely to continue to do so for some time to come. Third, we are one of the most open economies in the world. Finally, international competition for jobs and investment is becoming much more intense all the time. These are facts and realities with which we must live and I will take full account of them in framing the forthcoming budget.