Terence Flanagan (Dublin North East, Fine Gael)
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213. To ask the Minister for Finance the assessment he has made of EU policies for the promotion of economic growth; and if he will make a statement on the matter. [2583/13]

Michael Noonan (Limerick City, Fine Gael)
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At the outset I want to stress that growth and jobs is a key theme of the Irish Presidency of the European Union. A number of initiatives are being implemented at EU level in order to boost growth. I believe the cumulative impact of all of these measures will be positive in terms of supporting economic activity in the EU at this difficult juncture.

For instance, Heads of State or Government in the EU agreed on a compact for growth and jobs at the European Council on 28th and 29th June. This involves action by both Member States themselves and at EU level in order to boost growth, investment and employment.

Measures to be implemented at the national level include the full implementation of the country-specific recommendations from the European Semester, including the pursuit of differentiated and growth-friendly fiscal consolidation, the restoration of normal lending to the economy and the promotion of competitiveness.

At an EU level, policies to promote growth include a renewed emphasis on deepening the Single Market and reducing the regulatory burden. In addition, an important measure is the mobilisation of EUR120 billion - about 1 per cent of EU gross national income - to boost European growth. These funds will be made available via EU structural funds, European Investment Bank lending, and the 2020 Project Bonds initiative, which entered its pilot phase last November. Constituting part of these efforts is a EUR10 billion paid-in capital increase for the EIB, a substantial boost to its lending capacity.

It is also worth pointing out the progress that has been made in terms of the European financial sector, in recognition of the important role this sector plays in terms of supporting growth in the EU.

Finally, considerable progress has been made at a euro area level to put the single currency on a more solid footing. For instance, the establishment of the European Stability Mechanism and the ECB’s announcement of Outright Monetary Transactions have helped restore confidence, while the enhanced system of governance will have a positive impact on economic activity.