Michael Noonan (Limerick City, Fine Gael)

I propose to answer Questions Nos. 7 and 12 together.

I attended the meeting of ECOFIN on 15 May 2012 at which the following were the main points. Ministers reached agreement on two legislative proposals to amend existing EU rules on capital requirement for banks and investment firms. The objective of the proposals is, inter alia, to ensure that the effectiveness of the regulation of credit institutions and investment firms in the EU is strengthened and that financial stability is enhanced. These proposals also aim to transpose into EU law the agreements reached by the Basel Committee on Banking Supervision, that is the Basel III requirements, as endorsed by the G20 leaders. The Danish Presidency can now start negotiations with the European Parliament, the aim of which is to reach agreement, if possible, by June.

Ministers also discussed a draft Council decision to authorise the Commission to begin negotiations with five non-EU third countries - Andorra, Liechtenstein, Monaco, San Marino and Switzerland - to revise agreements with those countries on the taxation of savings income in order to ensure the continued equivalence of measures in those countries with the EU savings tax directive. While unanimous agreement on a mandate for the Commission was not reached, work will continue on this issue before the Presidency reports on tax issues to the European Council in June.

Council conclusions on the sustainability of public finances in light of ageing populations were adopted, as were Council conclusions on fast-start financing of climate change measures.

On its presentation of the draft EU budget for 2013, the Commission highlighted the importance of the EU budget as a driver of growth and jobs. During the subsequent exchange of views, the importance of the EU budget as an instrument for promoting growth in Europe was highlighted.

The Taoiseach has been very strong on supporting and advancing pro-growth measures at EU level. In preparation for the late-June European Council, President Van Rompuy is hosting an informal meeting of EU leaders this evening to discuss how growth and jobs can be boosted across the EU.

We all agree that a strong resumption of growth is critical for Ireland. I would point out that fiscal sustainability and measures to promote economic growth are not necessarily incompatible. My view is that measures to boost the economic growth rate can play an important role in addressing the current crisis in the EU. During a discussion on growth policies at ECOFIN I drew attention to the recent programme review mission during which we sought to strengthen the focus of our programme on growth measures. Working with our troika partners, we will continue to stress the importance of the growth agenda to the overall success of the programme.

Furthermore, I am continuing to explore all options that can enhance the growth agenda. In the margins of ECOFIN last week the Minister for Public Expenditure and Reform and I met senior officials from the EIB to explore mechanisms to access additional funding for investment in the Irish economy. All options are being explored to secure support for appropriate projects, for example, primarily schools and primary care centres. These projects will help generate jobs and growth in the economy.

We have committed to a substantial capital programme of €17 billion for the period 2012-2016 already. The intention is to complement this programme with additional projects funded through various potential sources - funds from the EIB, proceeds from the sale of state assets and use of some of the remaining funds of the NPRF. Significant progress has been made on many fronts specifically on the use of proceeds from the sale of State assets to be used for a domestic stimulus package. The Government is committed to getting the economy back on track and taking every opportunity to explore all options to advance the Government's agenda of jobs and growth both domestically and at EU level.

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