Bernard Durkan (Kildare North, Fine Gael)
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Question 52: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to recent comments by the European institutions drawing attention to a lack of competitiveness in the economy here; if he has identified the means whereby it is intended to address this issue; and if he will make a statement on the matter. [8391/08]

Micheál Martin (Cork South Central, Fianna Fail)
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In the Commission's December 2007 Report on Ireland's implementation of its National Reform Programme under the Lisbon strategy, the Commission said, and I quote, that: "Ireland has been making very good progress in implementing its National Reform Programme over the 2005-2007 period". Once again, Ireland was amongst a small group of Member States which did not receive any specific recommendations. It was also reported that progress was good over the full 2005-2007 period with regard to the implementation of particular policies to address micro-economic challenges, notably improving competitiveness, infrastructure, regulation and social inclusion, increasing R&D investment and efficiency, encouraging greater innovation and entrepreneurship and sustainable development.

On 19th February, 2008, as part of the Stability and Growth Pact, the European Commission delivered an annual assessment of the Irish economy. In its Report, the Commission recommended that Ireland should maintain firm control over public expenditures in order to keep the public finances in broad balance and implement further pension reforms to improve the long-term sustainability of the public finances in view of the significant projected increase in age-related expenditure.

Our overall growth performance is still impressive by international standards and growth is expected to pick up in 2009 and 2010. This is very much in keeping with the Commission's assessment that our growth prospects remain good and well above the euro area and EU averages. It is important to bear in mind, in relation to the Commission assessment, that the fundamentals of the Irish economy remain sound. The Irish workforce is dynamic, well educated and responsive to changing circumstances. Our markets for goods, services and labour are very flexible by international standards. We have an effectively regulated, pro-enterprise society where hard work and entrepreneurship are rewarded. The burden of taxation is low and is conducive to productivity growth and to attracting inward investment.