Emer Currie (Dublin West, Fine Gael)
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745. To ask the Minister for Enterprise, Trade and Employment if the Government has conducted an assessment of the implications for Ireland’s enterprise and inward investment policy particularly with respect multi-national enterprises operating in Ireland–of the absence of EU adequacy decisions with countries with which Ireland has significant economic links; and if he will make a statement on the matter. [21111/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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My Department continues to work closely with IDA Ireland to ensure there is a strong continued pipeline of Foreign Direct Investment (FDI) into Ireland. In this regard, my Department monitors developments in the area of data Adequacy Decisions and colleagues in the IDA are also apprised on the issue, which essentially provides a basis for transferring personal data outside of the EU.

The EU has a data adequacy agreement with both the US and UK and the matter of data adequacy has not been raised by IDA clients with the Agency. The European Commission adopted its Adequacy Decision for the EU-U.S. Data Privacy Framework on 10 July 2023, pursuant to Article 45 of the General Data Protection Regulation (GDPR). The adequacy decision concludes that the United States ensures an adequate level of protection – compared to that of the EU - for personal data transferred from the EU to US companies participating in the EU-U.S. Data Privacy Framework. Once an adequacy decision is in place, participating companies can transfer personal data freely without the need for additional data protection safeguards such as standard contractual clauses. This EU-US Adequacy Decision is important not only for business certainty, but for the proper protection of EU citizens’ data and the successful operation of the GDPR. Article 45 of the GDPR requires the European Commission to monitor developments and provides that an adequacy decision can be to the extent necessary, repealed, amended or suspended where an adequate level of protection is no longer ensured. Where an Adequacy Decision is repealed or suspended, affected businesses may also rely on the use of standard contractual clauses in order to continue to transfer personal data.

Officials from the Department of Justice continue to engage with the European Commission in relation to any changes to the US legal framework, which could impact on the adequacy decision, including developments in relation to the Privacy, Civil Liberties and Oversight Board. As required under the GDPR, the European Commission continues to monitor developments in respect of these matters.

Adequacy Decisions, including the EU-US Adequacy Decision, perform an important dual function; providing certainty for businesses when transferring personal data and protecting the personal data rights of citizens under the GDPR. The Department of Justice regularly monitors matters and engages with the European Commission, as necessary, in relation to any developments concerning current and prospective Adequacy Decisions. In the absence of an Adequacy Decision, the transfer of personal data can be carried out pursuant to other measures provided for in Chapter V of the GDPR, including with appropriate safeguards under Article 46 or derogations under Article 49.

A range of companies, including notably technology companies, are positioning Ireland as a key part of their global value chains, against a backdrop of intense global competition and an increased focus on industrial policies and other geopolitical developments. Ireland offers a competitive, consistent, and transparent corporate tax regime, good access and connectivity and an excellent return on investment, and is an attractive environment where people want to live and work. As a result, the Irish sites of leading global companies play a key role in creating or adding value to the goods and services that underpin the modern global economy. Regulation of dataflows and data protection are, of course, part of the essential ecosystem.

IDA Ireland launched its new strategy in February this year: Adapt Intelligently: A Strategy for Sustainable Growth and Innovation 2025-29. Under this new strategy, IDA Ireland will continue to target investments from across the globe through its global network of offices, and in collaboration with Team Ireland colleagues from this Department, the Department of Foreign Affairs, Enterprise Ireland, Research Ireland, Tourism Ireland, Bord Bia and Culture Ireland. IDA will continue to partner with international investors and companies to grow their businesses, to complete ground-breaking research and innovation, and to develop a rich, vibrant, talent capability for the needs of industry.

My Department is not complacent about Ireland’s competitiveness position regarding FDI with policies, strategies and the legislative toolkit constantly kept under review to ensure objectives set out in this critical part of the economy are met. In this regard, my Department and the IDA will continue to monitor developments in relation to data adequacy decisions, noting the importance of data matters to the technology sector, which is an important part of Ireland’s FDI base.