Éamon Ó Cuív (Galway West, Fianna Fail)
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To ask the Minister for Finance if he is concerned by the slowdown in the European economy in the fourth quarter of 2012; the discussions he has had with his ECOFIN colleagues to stimulate growth in the European Union; and if he will make a statement on the matter. [14044/13]

Michael Noonan (Limerick City, Fine Gael)
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In 2012, the slowdown of the European economy was larger than expected. However, fourth quarter data suggest that the euro area economy bottomed out at the end of 2012. Recent high-frequency indicators have provided some positive signals: euro area PMI data improved significantly in January to reach a 10-month high, the European Commission’s Economic Sentiment Indicator has increased well above economists’ expectations and euro area industrial production increased by 0.7 per cent in December. In its latest assessment, the European Commission predicts subdued activity in the first half of 2013 followed by a gradual recovery in the second half of the year. In relation to Ireland, figures published earlier today show GDP increased by 0.9 per cent last year, the second year of positive growth. While modest, the figures are encouraging. They suggest that the policy-mix sequence followed by the government has been appropriate. They also show that fiscal consolidation should not be regarded as an antithesis to growth, but rather as a precondition for it.

Nonetheless, such effort has to be balanced. Sluggish economic activity and high unemployment have broadened the consensus in Europe for policies more supportive of growth. In this regard, in June 2012, EU Heads of State or Government agreed on a "Compact for jobs and growth" which includes inter alia reorienting of structural funds, a €60bn increase of the European Investment Bank’s lending capacity and a commitment to remove regulatory barriers to economic growth.

Also, to prevent fiscal retrenchment from undermining growth prospects, the ECOFIN of February 2013 emphasized the importance of a "differentiated, growth-friendly consolidation strategy" in the EU.