Ireland has faced substantial challenges over the past five years as previously accumulated economic, fiscal and financial imbalances began to unwind rapidly. The fallout from this ultimately necessitated a programme of external financial assistance from the EU/IMF. However, since this Government took office we have actively set about addressing the challenges facing the State.
On the banking side, we have recapitalised and restructured the domestic banking system to make it fit for purpose. We have acknowledged the credit problems facing SMEs and established a loan-guarantee scheme. There is also ongoing work with the Troika on the issue of the Promissory Notes.
The Government has stabilised the public finances and placed them firmly on a downward trajectory. We have met the targets set out under the EU-IMF Programme. Indeed, on the deficit target for 2011, we came in at an estimated -10.1 per cent of GDP, well under the -10.6 per cent required. During the summer, in discussions with his European colleagues, the Taoiseach secured a reduction in the interest rate being charged on Programme funding.
Economic growth has returned, led by the exporting sectors and facilitated by inter alia improvements in competitiveness. Notwithstanding considerable uncertainty, all forecasters, domestic and international, expect the economy to continue to grow in 2012. While these are positive developments, the unemployment rate remains unacceptably high. Recognising this, the Government has given top priority to the creation and preservation of jobs including a Jobs Initiative in May 2011. Additionally, my colleague, the Minister for Jobs, Enterprise and Innovation will soon publish an “Action Plan on Jobs”.
So progress is being made on the economy, stabilising the public finances and in the banking sector.