Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context

Question 105: To ask the Minister for Finance the commitments submitted under the Euro Pact Plus on 3 May on Ireland's behalf; if he will circulate a copy of these commitments under each of the four headings; and if he will make a statement on the matter. [20994/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The Taoiseach submitted Ireland's first set of Euro Plus Pact commitments to the President of the European Council, Mr. Herman Van Rompuy, and to the President of the European Commission, Mr José Manuel Barroso, in letters dated May 3 2011. The commitments made under each of the four headings as sent in the letters are set out below. Ireland's Euro Plus Pact commitments 1. Fostering Competitiveness We are adopting policies to lower costs in sheltered sectors, thus boosting purchasing power and underpinning further competitiveness gains. These include:

- An independent review of Employment Regulation Order (ERO) and Registered Employment Agreement (REA) mechanisms, which has been completed

- Consideration of a potential programme of asset disposal based on the Programme for Government and the Review Group on State Assets and Liabilities

- Legislative changes to remove restrictions in the legal profession, medical services and the pharmacy profession, and to enhance competition in open markets.

2. Fostering Employment

A Jobs Initiative was announced in May 2011 which includes a range of further measures to support job creation. This reorientation of policies will be delivered within the overall fiscal targets of the EU/IMF Programme and includes:

- A 50% reduction until the end of 2013 in employers' social insurance contributions for low income earners (on a weekly wage of up to €356)

- A capital works programme concentrated upon "shovel-ready" labour intensive projects

- A large increase in the number of places for the unemployed across a range of education and employment programmes

- New taxation and sectoral measures to promote job creation.

3. Contributing further to the sustainability of public finances

We are delivering key institutional reforms including:

- A recently announced Comprehensive Spending Review that will underpin the fiscal consolidation process

- A Fiscal Advisory Council which will be established shortly

- Reform of the budgetary framework by way of a Fiscal Responsibility Bill to be introduced in the third quarter of 2011

- Proactive measures through the Social Welfare and Pensions Bill to reduce long-term pension liabilities

- The introduction of measures to broaden the tax base.

4. Reinforcing financial stability

We are addressing underlying weaknesses that led to the banking crisis. This will involve:

- Reforming and enhancing the supervisory framework for Irish banks

- A radical reorganisation and downsizing of the Irish banking system to more appropriately serve the needs of the Irish economy

- Deleveraging of the banking system to reduce lending in areas that will not support our economic recovery and also decrease the system's reliance on ECB/Central Bank funding

- The return of the banks to profitability by rationalising their cost base and fully recapitalising them based on stringent stress tests carried out by independent experts.

As was noted in the Taoiseach's letter of 3 May, the enhanced co-ordination in the areas of competitiveness, employment, sustainability of public finances and financial stability under the Euro Plus Pact represent an important step for the Eurozone and EU in the area of economic governance. Ireland's commitments are reflected in our National Reform Programme and Stability Programme Update which were submitted in late April 2011. They will also be taken forward in the context of the EU/IMF Programme of Financial Support for Ireland.