Bernard Durkan (Kildare North, Fine Gael)
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54. To ask the Minister for Finance the extent to which this economy remains competitive in the context of all others throughout the European Union, both within and outside the eurozone; and if he will make a statement on the matter. [13590/15]

Michael Noonan (Limerick City, Fine Gael)
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Substantial progress has been made in terms of improving Ireland's competitiveness in recent years.  

There has been a significant improvement in Ireland's economy-wide cost competitiveness. The European Commission in its recent winter forecasts estimated that real unit labour costs in Ireland fell by 4.3 per cent for 2014 as a whole, which is the largest decline across all EU Member States and compares with a fall of 1 per cent in the UK, a fall of  0.2 per cent in the USA and increases of 0.1 per cent in the EU, and 0.3 per cent in the euro over the same time period.

Improved competitiveness has been achieved through wage moderation as compared with our trading partners as well as through productivity improvements. In addition, relatively low consumer price inflation over the last number of years has contributed to the improvement in Ireland's competitiveness because Irish price levels have fallen considerably relative to those of our euro area peers. For instance, annual HICP inflation in Ireland has been below that of the euro area average for every year since 2009.

The European Central Bank's Expanded Asset Purchase Programme (EAPP), which began on 9 March, has been associated with a depreciation of the euro in recent months. This should also improve the competitiveness, and therefore the export potential, of firms in Ireland.