Brian Cowen (Laois-Offaly, Fianna Fail)

This issue did not come up at the European Council. It is a matter for the Minister for Enterprise, Trade and Innovation to respond on where exactly that dossier is at present. As a general point, the competitiveness of the European economy is being challenged seriously by other growth areas in the world. International investment patterns are changing and prospective, sustainable growth rates for the European economy are a good deal lower than in other parts of the world. Therefore, we must deal with the question of growth in the economy. The demographics are very different as well. The 2020 strategy outlined by Herman Van Rompuy as President of the European Council seeks to develop sustainable growth for the European Union. All areas of activity that impinge upon competitiveness must be examined. The need for flexibility in labour markets is something the Commission, the council and the ECB regard as an important issue to be addressed by national authorities.

One of the great benefits and attractions of the Irish economy has been the flexibility of the labour market. This is not available to the same extent in other European countries. Much of the investment that has come here has been on that basis. It has been one component although certainly not the sole or determining component, but it has been important. This relates not only to the availability of skill sets and of people to do the job required in many high technology sectors but also to the question of the flexibility of our labour market. In better times, to which we can return as we seek to stabilise the economy and return to growth, this flexibility ensured and enabled many in the informal economy or those on low wages to obtain employment. Inflexibility of labour markets leads to higher unemployment. We must find the balance between ensuring that people are treated with dignity and respect and, at the same time, that we have an economic model that can compete with other parts of the world which would otherwise obtain the investment we strive to obtain, were we not to ensure that we have a package that meets with all of the requirements.

It is not a black and white situation but there is a need to examine these issues because if one becomes rigid about these matters, it has been shown that, ultimately, the loss of competitiveness affects the quality of living that one strives to protect by having working time directives in the first place. One must find the balance. I believe there is room for further work to be done at European level which would not undermine the social model of Europe but would get it into the ballpark where it can compete. If it cannot compete then the maintenance of a social Europe is at risk anyway. What was the earlier question?

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