Oireachtas Joint and Select Committees

Tuesday, 10 June 2014

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

European Commission Country Specific Recommendations: Discussion

2:10 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

I have to confess I have not read all the other country-specific recommendations. The Commission analyses the data sets in each which tend to follow the same sort of pattern. In countries where there is high unemployment such as we had, although mercifully that is improving, it focuses on active labour market policies, retraining and displacement. Countries that have a bigger fiscal problem and are not in a troika process would lay heavier emphasis on broadening the tax base. To judge by last year's process, those issues came up. Some consider wage-setting mechanisms, which was controversial and the extent to which indexation is built in and whether that is appropriate when so much change is happening. It tends to analyse each country and, based on its situation, decides how to respond.

The Commission has high level European challenges, which are not surprising: tackling unemployment, reducing debt, shifting to more growth friendly taxation, boosting private investment, making our economies more competitive, youth unemployment and the youth guarantee. Depending where a country sits on the spectrum of these general issues, it might, for example, say that Austria or Germany has the best example of training and tells Spain to move closer to that model. It says the same to us. For example, the interest in the apprenticeship model and the need to modernise it is focused on a traditional weakness of Irish enterprise and the State's provision. It is a two-way street.

I can show the Deputy the issues it highlights in different countries. It highlights unemployment and contrasts Austria's 4% and Greece’s 27% and makes recommendations based on that.

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