Dáil Éireann Debate, Wednesday - 23 May 2012
88 Deputy Bernard J. Durkan asked the Minister for Finance if there is agreement among the EU Council of Finance Ministers both within the Euro zone and without on a strategy whereby each member State within the union undertakes specific responsibilities with a view to achieving economic recovery and stability in the financial markets; and if he will make a statement on the matter. [25941/12]
Amharc ar fhreagra92 Deputy Bernard J. Durkan asked the Minister for Finance if he is satisfied at the extent to which economic issues have been addressed within this State in 2011; the extent to which issues affecting this country’s economy at a European level have been identified and resolved; the extent to which economic growth is likely to reflect the changing situation; and if he will make a statement on the matter. [25945/12]
Amharc ar fhreagraI propose to take Questions Nos. 88 and 92 together.
While the EU and the euro area in particular has and continues to experience very turbulent and volatile times, it must be acknowledged that significant policy developments have also taken place. Considerable progress has been made in terms of improving the functioning of the EU and of the euro area in particular. Amongst other things we now have:
The EU Semester;
Strengthened surveillance via the so-called "six-pack" of governance measures;
The Euro Plus Pact to inter alia improve competitiveness; and,
Strengthened financial regulation.
These are all important developments and demonstrate that the EU can unite and work in the interests of all. To me this shows that the European Union can make significant decisions and progress that not so long ago would have been seen as almost unthinkable, and I take a lot of encouragement from this.
There is also the comprehensive package announced by the euro area Heads of State or Government on the 26th October 2011. This, as you know, is essentially a five-point strategy involving:
A credible solution to the Greek situation;
Boosting the effective capacity of the financial support facility;
Recapitalising Europe's banks;
Implementing policies to boost growth and address imbalances; and,
Improving economic governance in the euro area.
I want to assure the Deputy that work is continuing on implementing these important decisions. It is clear that we have not yet got to the end of the euro area crisis and it is clearly in all of our interests that we move forward as rapidly as possible in that regard. This evening's informal EU Heads of State or Government meeting and further work in the context of next month's European Council will also be of significance.
Turning to the Irish economy, last year the economy expanded by 0.7 per cent, the first year of growth since 2007. Measures that this Government introduced as part of the Jobs Initiative last May along with various other policy initiatives have had a positive impact. The recovery is expected to continue this year, and to both broaden and gain ground in 2013. Over the medium term, a return to robust and more sustainable growth is foreseen. While exports are expected to continue supporting economic activity, a gradual pick-up in domestic demand is also projected as the recovery broadens further and spills over to the labour market.
With regard to the impact of a slowdown of growth in Europe as a result of the recent resurgence of the sovereign debt crisis, as a small open economy whose recovery is being driven by exports, we are obviously affected by the slowdown. It should be noted however, that competitiveness improvements evidenced in recent years will provide some support.
Finally, from our perspective, and indeed from the perspective of the euro area as a whole, it is crucial that we move forward as quickly as possible with providing clarity on the future of the euro area.
