Taoiseach welcomes European Commission’s Communication on a European Economic Recovery Plan.

Speaking before departing for meetings with his Finnish and Swedish Counterparts ahead of next months European Council, the Taoiseach, Mr. Brian Cowen T.D., welcomed the European Commission’s Communication on a European Economic Recovery Plan.

 “Ireland is an extremely open economy.  Consequently, we are very susceptible to movements in the global economy.  The current global financial situation warrants a coordinated response.  I welcome the European Commission’s timely Communication which I expect will be major input to discussion at next month’s meeting of the European Council.”

The European Commission’s Communication on a European Economic Recovery Plan recommends that Member States agree a coordinated fiscal stimulus package. The Commission acknowledges that not all Member States have the same capacity for giving an additional fiscal boost.

Commenting on Ireland’s situation, the Taoiseach added:

“In Ireland’s case, while we have no room for manoeuvre in terms of an additional fiscal stimulus at this juncture, the measures we are already taking, for example, in the NDP and the relatively low tax rates for the employed are broadly consistent with the measures in the Commission’s Recovery Plan.  The priority for countries like Ireland with a relatively high General Government Deficit is to get our public finances back in order and this is acknowledged in the Commission’s plan.”

The Taoiseach is travelling to Helsinki and Stockholm as part of a wider series of consultations with EU partners ahead of the December European Council.

ENDS