Mr. Carlos Martínez Mongay:

It is difficult for me to see the link between both issues. What the Commission tries to recommend is that governments, policymakers and economic policy put in place conditions to support people to make the most rational choices based on their preferences. The failure to provide enough affordable and good quality childcare is not fair because it means many people who would like to develop a profession cannot do so. That is the Commission's line.

I agree with the Deputy that GDP does not cover everything and certain factors other than GDP are not easy to measure. However, when one wants to buy a house, one needs the money to do so. In respect of housing, the Commission is pushing and supporting the Government with its national development plan in order to foster and promote social housing. The Commission is recommending action on both fronts. Economic policy should allow people to make their own decisions, not to impose a decision from one side or another.

Concerning the risk of inflation, the Deputy will understand that as a representative of the Commission, I do not comment on monetary policy. Inflation comes under the remit of the European Central Bank, ECB. According to our forecasts to date, inflation is still subdued in the euro area. In particular, in terms of core inflation, which is inflation net of the impact of energy prices and more volatile components of inflation, we are still far below the ECB target of 2%. When the economy is gathering strength inflation increases and we see inflation building up. However, it is still far behind the ECB targets.

On the question on broadening the tax base, the Deputy mentioned environmental taxes. The way pollution is taxed in Ireland and the way the environment and environmental policies are supported leave some room for introducing some environmental taxes.

Such taxes would lead to a more permanent source of revenues, particularly as these taxes depend on investment in certain goods that are more or less stable. This is what we are recommending.