Bernard Durkan (Kildare North, Fine Gael)
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Question 80: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps taken or expected to be taken at European Union level to ensure the viability of the manufacturing and service sectors throughout the European Union with particular reference to the need to remain competitive; and if she will make a statement on the matter. [47137/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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The economic and financial crisis has been a catalyst for one of the most significant and most extensive policy coordination endeavours among Member States. In December 2008, the European Commission proposed and the European Council agreed to the European Economic Recovery Plan (EERP). The size of the total package is 5 per cent of EU GDP or some €600bn over 2009-10. The primary emphasis within the Plan is to preserve the Single Market and integrate Europe further within international markets.

The Plan broadly supports the strategic aims of the Lisbon Agenda, that is investing in R&D; developing the right skills; promoting energy efficiency and clean technologies that will speed-up the transition to a low-carbon economy; support for small and medium enterprises and investing in infrastructure and interconnection in network grids in order to promote efficiency and innovation. These measures are complemented by the Member States' determination to protect the most vulnerable and to avoid the drift into long-term unemployment.

Accelerated implementation of the Structural Funds Programmes has helped boost infrastructure development and is making a major contribution to retraining people and supporting social cohesion, particularly through the European Social Fund. Workers, including Irish workers, who lost their jobs in 2009 have also been targeted for support from the European Globalisation Adjustment Fund (EGF). In addition, a significant increase in lending this year by the European Investment Bank (EIB) of €25 billion and European Bank for Reconstruction and Development (EBRD) of €8 billion has supported access to finance, particularly for SMEs. In that regard, Ireland has benefited from some €300m provided by the European Investment Bank for lending by the main Banks to SMEs for investment and expansion of their activities.

The Commission has also launched three public-private partnership initiatives to support energy efficient buildings, green cars and factories for the future. Following a proposal from the Commission, some €5 billion of unspent resources in the EU budget has been reserved for investments in energy (€ 4 billion) and broadband infrastructure (€1 billion). In 2009, the Ireland-Wales electricity inter-connector project was included in the European Energy Programme for Recovery with funding of up to €110 million.

With a view to preserving and enhancing the competitiveness of European industry and improving the conditions for investment in Europe, the EU Competitiveness Council recently highlighted a number of priorities for the next decade under Four broad headings:

· Sustainable competitiveness and industrial policy and transforming Europe into an eco-efficient economy

· Creating the best framework conditions for growth and jobs

· Global competitiveness through enhanced innovation and research

· Keeping SMEs at the heart of Europe's economy

Exploiting innovation, both technological and non-technological, in order to develop new areas of business and enterprise will feature prominently as a key element of the new EU Strategy towards 2020. The EU Commission are also consulting Member States about the formulation of a revised Innovation Plan for Europe for discussion during the forthcoming EU Spanish Presidency in 2010. The Innovation Plan will be based on developing the synergies of the "knowledge triangle" (i.e. linkages between research, education and innovation which are key drivers of a knowledge based society).

I look forward to upcoming discussions to take place early in 2010 on the new strategy to replace the Lisbon Agenda. Europe needs an ambitious targeted Agenda to drive sustainable growth and jobs across the EU and to position us as the world's most significant market and competitive trading bloc. We also need a strategy that will both help to re-skill our unemployed and to prevent the drift into long-term unemployment and one that will create jobs in the new eco-efficient economy.