The decisions taken by the European Council and ECOFIN over the weekend were taken as a rapid response to what the European Central Bank regarded as the prospect of a systemic risk to the euro currency, beyond the Greek situation alone. The original purpose of last Friday's meeting was to finalise the arrangements relating to Greece. It was not a question of not giving prior notice of issues that were coming up. This issue had to be dealt with as a matter of urgency. It was dealt with quite well by the European Council and ECOFIN over the weekend. Rather than running down the prospects of the euro and the country, it is far better to acknowledge that the market has reacted positively.
The statement also referred to the structural issues that have to be dealt with, in terms of deficit reduction, by all countries with such issues. There has been an acknowledgment that the Irish Government and the Irish economy started that structural adjustment in 2009. There was an adjustment of 5% in 2009 and an adjustment of 2.5% in 2010. While we have to remain vigilant, further adjustments which will lead to a reduction in the deficit have to be made. The international markets have shown an acknowledgement and an acceptance of the credibility of the Irish position.
The European Commission, the European Council and ECOFIN are clearly emphasising the need to have a more effective surveillance and monitoring mechanism, in respect of the stability of the euro, in the future. The task force that is working under the Presidency of Herman Van Rompuy will have to accelerate its work. The proposals to be made by the Commission this week will make an input into that. When people are commenting on these matters, I ask them to acknowledge the commendations that have been given to the Irish so far. While we should not be self-congratulatory in any way, that which is acknowledged externally might be acknowledged at home as well.
In response to Deputy Kenny's point about support for the jobs strategy, the fundamental aspect of everything we do is to try to protect and create jobs now and in the future. We have taken a very hard hit throughout this recession, particularly last year when we experienced a contraction of 10.5% of GNP.
There has been an increase in unemployment up to 13.4%. We have taken action in improving the position of our public finances, which provides greater confidence externally and internally. Thankfully, this will result in an improvement in consumer sentiment and an increase in consumer spend for the first time in two years. We have also seen an improvement in competitiveness, which has been remarked upon not only by the President of the European Central Bank but by colleagues throughout Europe. We are also trying to maintain and create jobs by repairing the banking system and we are in the throes of doing that.
In addition to the stabilisation fund referred to by the Deputy, we are providing an employment subsidy scheme. Both initiatives are protecting in the region of 90,000 jobs. The semi-State sector will provide €2 billion in investment this year and when this is added to the capital investment programme of €6.5 billion, that makes a total investment of €8.4 billion. That will also provide jobs for up to 60,000 people. Therefore, it is not correct to say the Government is not in any way trying to assist people. We are assisting people in every way we can and the €100 million programme referred to by the Minister for Finance in 2009 related to a two to three-year programme.
