Harney Launches Presidency Programme

"We need to make decisions on the real issues that affect growth and employment" - Tánaiste

Tánaiste and Minister for Enterprise, Trade & Employment, Mary Harney, today set out her priorities for the Competitiveness Council during Ireland's six months Presidency of the European Union. The Work of the Competitiveness Council is seen as critical to achieving Europe's ambition to become the most competitive and knowledge-based economy in the world by the year 2010 - the so-called Lisbon agenda. The Council will provide a crucial input to the Spring European Council summit meeting of EU leaders.

The Programme is set out in a Competitiveness Council Priorities Paper published today and available on the Internet at, http://www.eu2004.ie/templates/standard.asp?sNavlocator=4,22

Launching the Paper, the Tánaiste made it clear that making real and significant progress towards achieving the targets set out in the Lisbon Agenda is a key priority for the Irish Presidency.

The Tánaiste said:

"Ireland has assumed the Presidency of the European Union at a time of historic transition and challenge. Enlargement from 15 to 25 members, which takes full formal effect on May 1^st, represents not just an extension of the Union's borders to the east and south and a substantial increase in its population, but a transformation in its political and cultural profile. Eight of the new member states are in Eastern Europe and were formerly within the Soviet bloc; two, Cyprus and Malta, are Mediterranean islands. These accession states will bring to the Union not only their unique political insights but also a tremendous appetite for change and economic reform. They will add a new dynamic to the Union and will have an important contribution to make to the debates to come about the future direction of the Union and its relationships with the wider world.

"Many of the new Member States look to Ireland as a role model for the benefits of EU membership. Financial transfers alone are not the key to sustainable growth for any EU member state; for Ireland internal policy reform was also essential, and I believe it will be the same for the accession countries. Most progress on the fundamental issues of competitiveness and innovation can be made at national government level.

"The programme for the Competitiveness Council over the 6 months of our Presidency is placed firmly in the context of the 10-year strategy for growth, economic reform and job creation set at the Lisbon summit in 2000. A key goal of the Irish Presidency will be to re-invigorate the Lisbon agenda and to prioritise certain key policy decisions that need to be taken. The Taoiseach has already written to his counterparts in Europe and to President Prodi setting out the approach he intends to take and the priorities he intends to focus on. These priorities were further developed at the meeting in Dublin Castle on Tuesday between the Government and the Commission.

"It is my intention that the input from the Competitiveness Council to the European Spring Summit, which will be devoted to economic reform and the Lisbon agenda, will be short, sharp and focused. We know, broadly speaking, the policies that need to be pursued; they relate to the promotion of a business environment in which enterprise can prosper, in which regulatory burdens are eased, where efficient capital markets operate and where there is increased investment in infrastructure, research and development, and education and training.

"Within these parameters we intend to concentrate on a limited set of actions and to set targets and deadlines, both for Member States and the Commission, by which progress can be measured. In particular we intend to make tangible progress on the proposed creation of the European Research Area. The conclusions of an international conference on this issue to be held in Dublin in February will be on the agenda of the formal Competitiveness Council meeting in Brussels on March 11^th. The Union can assist in this by underpinning the principle of free movement of researchers and the science community with provisions that enable mobility between member states and from third countries.

"We are committed to reaching the Lisbon target of 3% of GDP for investment in research but this is about more than figures on a board. I want to see an environment develop throughout Europe which is genuinely conducive to research and innovation. If we are to encourage innovation we must give the innovators the capacity to protect their ideas and inventions. That is why I am committed to making progress on the broad issue of enforcement of intellectual property rights.

"Above all, we need regulatory reform. Since the Lisbon growth targets were set almost four years ago the growth gap between Europe and the US has widened; not because the US is smarter intellectually but because they're better at getting things done. We need fewer, not more, prescriptive proposals from Europe. The Competitiveness Council is the engine room of the Lisbon agenda. The rationale for its establishment two years ago was to streamline the work previously done in three separate Councils and Ireland was an enthusiastic support of this strategy. If things don't move at the Competitiveness Council now, the whole EU vehicle and the Lisbon agenda will stand still. The `competitiveness proofing' of new regulatory proposals from the Commission will be a key test of the Council's potential.

"On the issue of employment and labour market reform, I welcome the report of the Employment Task Force, chaired by Mr Wim Kok, which has proved to be a timely stock-taking exercise, addressing the key issues that the EU as a whole and Member States individually need to confront. The report does not understate the sense of urgency and the Irish Presidency will seek to build on that. We hope the Commission will also capture that sense of urgency in its response; it can carry through the Task Force's recommendations by means of specific and concrete proposals that can be endorsed by the Spring Summit. We need to boost competitiveness through a more systematic approach to the simplification of rules and regulations and through continuing labour market reforms. Both the Irish Presidency and the Dutch, who will succeed us, are committed to such reforms.

"The booklet which I am launching today - The Competitiveness Council Priorities Paper - summarises the programme of work planned by this Department for the next six months. It includes a calendar of formal and informal Council meetings, meetings of technical groups and planned conferences and seminars. Our legislative schedule is constrained to some degree by the pending European Parliament elections this summer and the prospect of a new Commission later in the year. Nevertheless it is our intention to keep up the momentum. In the light of the IGC disappointment, we have no time to lose," the Tánaiste concluded.

ENDS

8^th January 2004