Martin Daly (Roscommon-Galway, Fianna Fail) | Oireachtas source

As we reflect on the outcomes of the recent European Council meeting, it is vital we in this House consider and respond to the key priorities raised, including Ukraine, the Middle East, security and defence, migration and the European Union's next multi-annual financial framework. Each of these issues is significant. I made a statement on security last week, emphasising Ireland's need as a mature, militarily neutral but politically aligned State to invest in its security and defence.

Today I will focus on the theme at the heart of our long-term prosperity, namely, Europe's competitiveness. European businesses, especially SMEs, are facing an excessive regulatory burden which slows down growth, holds back innovation and weakens our global competitiveness. The European Commission is responding with specific targets aiming to reduce reporting requirements by at least 25% for all companies and at least 35% for SMEs. This is a necessary and welcome step. If fully achieved, these simplification measures could deliver €37.5 billion in annual savings across the European Union. This is not just a statistic. It is money that can be reinvested in job creation, innovation and productivity instead of being lost in red tape.

For far too long, our SMEs have been weighed down by layers of overlapping and complex regulation. These are the very businesses that power our local economies, create jobs and drive entrepreneurship. If we want to keep up in a competitive global market we need to ensure they can operate with clarity, confidence and agility. Let us be clear, this is not about abandoning regulation. It is about smarter regulation and rules that support, rather than stifle, innovation; and simplification that boosts transparency without compromising standards. We need a system that recognises our businesses, not as boxes to be ticked, but as engines of growth.

In January 2025, the Commission introduced the competitiveness compass, a new roadmap to restore Europe's dynamism and accelerate economic growth. It builds on the insights of Mario Draghi's report on the future of European competitiveness and provides a strategic framework for the Commission's work during this mandate. The Draghi report identified three core imperatives, closing the innovation gap, developing a joint strategy for decarbonisation and competitiveness and increasing security while reducing excessive dependencies outside Europe. The competitiveness compass outlines a clear path to turning these priorities into tangible outcomes, offering both direction and accountability. This broader vision matters because competitiveness is not just about reducing paperwork. It is about enabling Europe to lead in technologies, industry and energy systems of the future.

The EU's renewed focus on completing the Single Market, improving access to capital and removing unnecessary barriers is both timely and essential. However, ambition alone will not be enough. It must be backed by real delivery. As legislators, we have a responsibility to support this agenda at home. In Ireland that means making sure our businesses, especially SMEs, feel the impact of this drive for simplicity and efficiency. It means championing reforms that reduce bureaucracy, accelerate growth and make Ireland a leader in business dynamism within Europe. Let us seize this moment to align with Europe's momentum for reform. Let us give our SMEs the freedom to thrive, innovate and compete, not only across Europe, but globally.

Competitiveness is not just an economic goal but the foundation of sustainable prosperity for Ireland and the EU.

See this speech in context