Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The recovery in jobs is broad-based and across various sectors. While there has been some recategorisation by the CSO, it does not affect the headline figures. The CSO stands over the headline figures but there is some recategorisation within it. The CSO has published the figures so the Deputy can check for himself. The recovery is broad-based and across a lot of sectors.

With regard to whether the improvement will flow into income tax, VAT or excise, there are about 850,000 people at work who do not pay any income tax. They have no income tax liability.

That is more than one third of the people at work - an awful lot of people. Our income tax system is very progressive and many low-paid people are exempt from income tax. Some low-paid people who do not pay much, or any, income tax are part-time workers but the latest set of employment figures suggests that the increase in employment is through full-time workers.

I do not agree that the European semester is a device to penalise Ireland. While we were in the programme, other countries were subject to the European semester. France and Spain and other large countries get strong mentions in the European semester when they come before the ECOFIN meeting in June for peer review. It is not a device to pressure small economies or small countries.

I think the Deputy agrees with the analysis that it is not possible to have a common currency zone without an architecture to underpin it. We need a fiscal union to sustain a common currency and a banking union. The Deputy will be pleased to hear that the European Parliament has passed the final element of the banking union. The resolution legislation has gone through the European Parliament. It has moved the agenda in the direction we have long advocated. There will be no more bailouts by the European taxpayer; the legislation provides for the bail-in of banking assets and a fund put together through levies on the industry. It is a red letter day in Europe and I hope it works when the full elements of the banking union come in next year and the year after.