Staff teams from the European Commission (EC), European Central Bank (ECB), and International Monetary Fund (IMF) visited Dublin during October 16–25, 2012 for the eighth review of the government’s economic programme and also met with a variety of stakeholder groups.

Policy implementation remains steadfast despite the challenging external environment, helping Ireland to start to regain market access. It is expected that fiscal targets for 2012 will be met despite expenditure overruns in some areas, and the authorities are committed to the 2013 deficit ceiling of 7.5 percent of GDP. Banks remain well-capitalised and downsizing has progressed well, yet further efforts are needed to address their profitability and asset quality challenges. In line with the euro area summit conclusions of 29 June, EC/ECB/IMF teams continued to discuss with the authorities possible technical solutions to improve the sustainability of the well-performing adjustment programme.

See "Spotlight" below for the full statement.

At their 18-19 October summit, EU leaders agreed to act quickly on economic stimulus measures and to take steps towards a closer economic and monetary union.

In a briefing prepared for their meeting, Commission President José Manuel Barroso said more must be done under the recently announced compact for growth and jobs, a €120bn package of measures to help countries recover from the crisis. The funds include an expansion of the European Investment Bank's lending capacity by €60bn. Another €55bn will be redirected from unused EU regional funds to support small businesses and create jobs for young people.

Leaders agreed to make the EU’s single market work better by fast tracking Commission proposals already on the table. They pledged support for other stimulus measures, including the launch of the Connecting Europe Facility, which will fund €50 billion worth of investments in transport, energy and digital networks.

The financial sector must also make a fair contribution to the recovery. The Commission will take a first step towards introducing a tax on financial transactions and present a plan to crack down on tax fraud and tax evasion before the end of the year. Leaders agreed to complete work on common supervision of the eurozone’s banks by the end of the year. The legal framework will be implemented in 2013. The European Central Bank (ECB) will have a central role in establishing a single supervisor. Other EU countries would be able to join the new arrangement.

Leaders also agreed work should continue on proposals  for a banking union, fiscal union, economic union and steps towards political union. President Barroso said the Commission will set out its blueprint on the proposals later this year. Council president Herman Van Rompuy, in collaboration with the presidents of the Commission, the Eurogroup and the ECB will complete a final report on the proposals in December.

Second quarter figures for 2012 show that Ireland had the fourth highest government debt to GDP ratio in the EU - behind Greece, Italy and Portugal.

From the first to the second quarter of 2012, 20 Member States showed an increase in government debt to GDP. Ireland was one of these but came behind Greece, Cyprus, Portugal, Slovakia and Finland.

Ireland’s debt to GDP in the second quarter of 2012 was up 10 percentage points on the same indicator for the previous year (Q2 2011).

At the end of the second quarter of 2012, the government debt to GDP ratio in the euro area (EA17) stood at 90.0%, compared with 88.2% at the end of the first quarter of 2012. In the EU27 the ratio increased from 83.5% to 84.9%. Compared with the second quarter of 2011, the government debt to GDP ratio rose in both the euro area (from 87.1% to 90.0%) and the EU27 (from 81.4% to 84.9%). These data are released by Eurostat, the statistical office of the European Union.

A new €2.5 billion Fund to support schemes providing food to the most deprived persons and clothing and other essential goods (such as shoes, soap and shampoo) to the homeless and to materially-deprived children, was proposed by the EU Commission today. EU statistics show that out of the 116 million people in the EU who are at risk of poverty or social exclusion, about 40 million are suffering from severe material deprivation.

The proposal would give considerable flexibility to national authorities to plan and deliver the assistance in line with their national schemes. Partner organisations, often non-governmental, would be responsible for delivering the food or goods. To meet the Fund's social cohesion objectives, partner organisations would not only have to provide material assistance to the most deprived persons but also undertake basic activities aimed at their social integration. The Fund would also be able to support such accompanying measures.

Irish fishermen may get additional fishing opportunities in 2013. The EU Commission proposed today increased levels of total allowable catch (TAC) for certain fish stocks in the Atlantic and the North Sea. In line with scientific advice, the Commission proposes to increase or maintain the TACs for 16 stocks (including certain stocks of herring, cod, whiting and sole), and reduce them for 47 stocks. Today's proposal sets levels of TAC for stocks managed exclusively by the EU.

The Commission's ultimate goal and one of the pillars of the on-going Common Fisheries Policy (CFP) reform is to have all stocks fished at sustainable levels, the so-called Maximum Sustainable Yield (MSY), by 2015. Whenever possible, scientists advise on how to bring the stocks to MSY levels. This year, the so-called "MSY advice" could be issued for 20 stocks (compared to 12 last year). This is a marked improvement as far as the availability and quality of scientific data are concerned.

It’s 20 years since the EU’s markets without borders opened for business - the legal framework is there, our right to travel, work, move goods and money around the biggest single market in the world (500 million people) is all in place, but how can Irish SMEs crack this vital market on our doorstep?

To coincide with the anniversary, and to set the scene for Ireland’s EU Presidency with its emphasis on jobs and growth, the European Commission and the Department of Jobs, Enterprise and Innovation are hosting a FREE conference “20 years of the Single Market – Europe working for Irish SMEs” in Croke Park on Thursday, 1st November from 9.00am to 4.00pm.  All you have to do is register at rsvp@singlemarketconference.com

The event is targeted at SMEs and will include hands-on workshops on how to make the most of the Single Market. Workshop leaders will be successful entrepreneurs and experts on topics including: Access to Finance; the Digital Single Market; How to sell in the EU and more.

The 10 Member States that wish to apply an EU financial transaction tax (FTT) through enhanced cooperation should be allowed to do so, because all the legal conditions for such a move are met. This is the conclusion of the proposal for a Council Decision adopted by the Commission this week. Moreover, enhanced cooperation on the FTT would not only bring "immediate, tangible advantages" for those countries that participate, but would also contribute to a better functioning Single Market for the Union as a whole, the proposal states.

The proposal outlines how a common FTT applied by a core group of Member States would be both timely and beneficial. Firstly, it would reinforce the Single Market, by reducing the complexities and competitive distortions that arise from a patchwork of different national approaches. Businesses across all 27 Member States would benefit from reduced compliance costs and greater legal certainty if a uniform system was applied by a significant portion of the EU market. Secondly, the FTT would ensure a fairer contribution from the financial sector to the public purse. It would create a more level playing field between the financial sector and other sectors in covering the costs of the crisis. Finally, a common FTT would make financial markets more efficient, by steering them away from casino-type trading to more stable activities which support the real economy.

The European Commission has launched an environmental app that can be downloaded to Apple and Android devices. Zoe Makes a Splash! is an interactive digital storybook aimed at children between the ages of 7 and 11 and is free to download. The app tells the story of two inquisitive children who are shown the importance of water in society. Their guide is an articulate frog, who also alerts them to the impact of polluted water and shows them how it can be avoided. Fun animations and interactive features alternate with more serious educational sections, where users learn about the hydrological cycle and water treatment.

An online version of the story is also available, with a set of teaching notes to encourage project-based activities in the classroom.

EU law provides that, if their flights are cancelled, passengers may receive fixed compensation amounting to between €250 and €600. In the judgment in Sturgeon and Others, the Court of Justice found that passengers whose flights are delayed may be treated the same way as those whose flights are cancelled as regards their right to compensation. Thus, the Court held that if passengers reach their final destination three hours or more after the arrival time originally scheduled, they may claim fixed compensation from the airline, unless the delay is caused by extraordinary circumstances.

In a judgment earlier this week, the Court confirmed its interpretation of EU law in the judgment in Sturgeon and Others. It reiterated that the principle of equal treatment requires that passengers whose flights are delayed and those whose flights are cancelled ‘at the very last moment’ must be regarded as being in comparable situations as regards the application of their right to compensation, because those passengers suffer similar inconvenience, namely, a loss of time.

The European Commission yesterday published its annual report on the EU's progress towards meeting its Kyoto Protocol target for reducing greenhouse gas emissions. At the same time, the European Environment Agency (EEA) published its latest analysis of greenhouse gas trends in the EU.

The 2011 emissions were consistent with the decreasing trend observed since 2004. Despite a 48% GDP increase since 1990, greenhouse gas emissions in the EU-27 have decreased by 18%. The EU-15 and the 10 Member States that have individual commitments are on track to achieve their 2008-2012 emission reduction targets under the Kyoto Protocol. From 2013 onwards, the EU will have annual emission limitation targets in line with a 20% greenhouse gas emission reduction by 2020 compared to 1990.

Consumers are increasingly buying on the world market, online and offline. In this larger global market, they want to be sure that no dangerous products have slipped through the net. How can they find out whether the baby-carrier or the bike made outside the EU complies with European and international safety requirements? They can now look it up in the "Global Recalls" portal.

This new international portal, which was launched in Brussels recently, allows authorities across the world to exchange information about unsafe products that have been taken off the market. The ‘Global Recalls Portal’ is a project developed jointly by EU and OECD countries including the US, Australia and Canada.

"The media and content industries. A quantitative overview" is the title of a new report just published by the European Commission's Joint Research Centre (JRC). The report shows that digital spending - the acquisition of media products in digital format - tripled from 2006 to 2010 worldwide, with the recording music sector now achieving 30% of its global sales in the digital market. The digital success of the music sector contrasts other media and content industries, which are moving at a slower pace towards digital distribution. Only 6% of film/video, newspapers, magazines and book sales, for example, were digital.

Commissioner for Research, Innovation and Science, Máire Geoghegan-Quinn said: "Media and content industries are innovative and of great social and economic importance for Europe. Managing and reacting to the challenges of globalisation and the digital shift will be key, and that means new business models that turn these challenges into opportunities. This report provides a valuable insight both for the industries and policy makers and will help us shape the right answers together”.

The Enterprise Europe Network is opening the doors for small- and medium-sized enterprises (SMEs) to key international markets, with new branches to open in India and Canada and a reinforced presence in China. India is the latest country set to join the Network, with three new centres to start operating in New Delhi. An office will also shortly open in Canada, while four new branches in Shanghai and Nanjing have brought China's total to 27.

The EU-funded business and innovation support network, based in close to 600 local organisations in 52 countries, eases the way for companies to start trading abroad, find business or technology partners and access EU funding. Its presence in Europe, the Middle East, Asia and the Americas gives SMEs a foothold in established and emerging global markets.

EU-funded research has confirmed that newborns exposed to nicotine from both active and passive smoking mothers show poor physiological, sensory, motor and attention responses.

Smoking is still widespread in Europe. Approximately 29 % of Europeans smoke and 695,000 Europeans die prematurely of tobacco-related causes, making it the largest single cause of preventable death. In financial terms, smoking costs the EU countries at least EUR 100 billion. Smoking during pregnancy is one of the biggest yet avoidable causes of illness and death for both mother and infant. Nonetheless, epidemiological studies show that between 11 % and 30 % of pregnant women smoke or are passively exposed to tobacco smoke.

The European Commission has informed Microsoft of its preliminary view that Microsoft has failed to comply with its commitments to offer users a choice screen enabling them to easily choose their preferred web browser. In 2009, the Commission had made these commitments legally binding on Microsoft. The sending of a statement of objections does not prejudge the final outcome of the investigation.

Today Thursday 25 October: Environment Council, Luxembourg

Today Thursday 25 to Friday 26 October: Justice and Home Affairs Council, Luxembourg

Monday 29 October: Transport, Telecommunications & Energy Council, Luxembourg

Thursday 1 November: Conference: Europe working for Irish SMEs, Croke Park, Dublin

Thursday 8 November: Seminar on ‘European Economic Policy – What’s in it for Ireland?’, NUI Galway

Thursday 8 November: Governing Council of the European Central Bank, Frankfurt

The United Nations Rio+20 world summit, held in Rio de Janeiro in June 2012, aimed to secure renewed political commitment to sustainable development. To follow up on the conference, the European Commission wishes to develop specific actions and concrete measures to make sustainable development a reality, within the EU and globally. A public consultation is being held to gather views and ideas. These will be an input to a Communication from the Commission on the follow-up to Rio+20, planned for the first quarter of 2013. The consultation is open until 15 January 2013.

The public consultation seeks input on a number of policy questions around five main lines:

1. Policies aimed at moving towards an inclusive green economy, as a means to achieve sustainable development in the EU and globally.
2. Setting priority areas of action, such as poverty eradication, sustainable agriculture, water, sustainable energy, decent work for all, oceans and fisheries, and sustainable consumption and production, and reflecting upon the usefulness of targets and indicators in these areas.
3. Developing Sustainable Development Goals, reflecting on themes and topics and their optimal form, and suggesting ways to monitor progress in reaching them.
4. Considering options for an effective Sustainable Development Financing Strategy, including on possibilities of mobilising existing resources and ways of encouraging investments.
5. Strengthening the institutional framework for sustainable development, in the context of the United Nations Environmental Programme (UNEP) and the High Level Political Forum (HLPF) on sustainable development, and thinking about ways to improve stakeholder participation. 

Would you like the opportunity to have your say on whether or not youth is wasted on the young and maybe win a prize in the process. Ireland's eight Europe Direct Centres are organising a series of regional soapbox competitions on this very topic (see dates and venues below).  The prizes for the regional competitions include iPads and trips to Brussels. The winners will also go forward to compete in the overall final in Farmleigh House, Dublin on 20 November (11 a.m. to 3 p.m.)  for a first prize of €1,000.

The dates and venues of the regional competitions are as follows:

• Thursday 1 November: Thurles Europe Direct Centre, 7.00pm
• Thursday 1 November: Westside Library, Ballinalsoe / Carraroe Europe Direct Centre, 8.00pm,
• Tuesday 6 November: Waterford Europe Direct Centre, 10.30am
• Wednesday 7 November: Europe Direct NI Centre, Fermanagh House, Enniskillen
• Thursday 8 November: Letterkenny Europe Direct Centre, 7.00pm
• Saturday 10 November:  Killarney Europe Direct Centre, 2.30pm

Competitions have already taken place in Blanchardstown and Dundalk Europe Direct Centres.

Anyone wishing to take part in the competitions must give a presentation consisting of a three minute speech for or against the topic, "Youth is wasted on the Young", before a public audience and a panel of judges.

If you are interested in taking part in this competition, please note that an application form must be submitted to the relevant Europe Direct Centre no later than 48 hours before the event. Prizes are sponsored by the European Commission Representation in Ireland and local Members of the European Parliament.

For further information visit:  http://www.europedirect.ie/soapbox-competition/

Staff teams from the European Commission (EC), European Central Bank (ECB), and International Monetary Fund (IMF) visited Dublin during October 16–25, 2012 for the  eighth review of the government’s economic programme and also met with a variety of stakeholder groups.

Policy implementation remains steadfast despite the challenging external environment, helping Ireland to start to regain market access. It is expected that fiscal targets for 2012 will be met despite expenditure overruns in some areas, and the authorities are committed to the 2013 deficit ceiling of 7.5 percent of GDP. Banks remain well-capitalised and downsizing has progressed well, yet further efforts are needed to address their profitability and asset quality challenges. In line with the euro area summit conclusions of 29 June, EC/ECB/IMF teams continued to discuss with the authorities possible technical solutions to improve the sustainability of the well-performing adjustment programme.

Ireland's gradual economic recovery has continued, but largely due to weaker net exports, real GDP growth has slowed to a projected rate of ½ percent in 2012. Domestic demand and employment continue to decline owing to ongoing household balance sheet repair, the weak labour market, and low lending to households and SMEs. Prospects for growth in 2013 are for modest pick up to just over 1 percent as domestic demand declines moderately, although weak trading partner growth may continue to dampen net exports despite Irish competitiveness gains.

However, unemployment remains unacceptably high, especially among the youth, making job creation and growth a key priority. Accordingly, plans are progressing to utilise resources from the European Investment Bank, the National Pension Reserve Fund, and private investors to finance job-rich projects in several sectors. The Action Plan for Jobs will contribute to employment generation through a wide range of measures. It is also important to ensure that job seekers are well prepared to fill positions when they become available by strengthening employment and training services through vigorous implementation of the Pathways to Work initiative. Engagement with the long-term unemployed should be a priority, including through timely and well designed involvement of the private sector in providing employment services.

It is expected that fiscal targets for 2012 will be met. Revenues remain ahead of profile in the first three quarters of 2012, which, together with expenditure restraint in several areas, has offset expenditure overruns in the health sector, and also on social welfare owing to higher unemployment. The authorities are alert to the health sector overruns and are determined to meet the programme target for a budget deficit below 7.5 percent of GDP in 2013. The measures adopted in Budget 2013 should be durable, as growth-friendly as possible, and minimise the burden of adjustment on the most vulnerable.

The authorities are ramping up reforms to restore the health of the Irish financial sector so that it can help support economic recovery. Intensified efforts are required to deal decisively with mortgage arrears and further reduce bank operating costs. Parliament is currently considering an ambitious reform of the personal insolvency framework.  For this essential reform to succeed, a careful balance should be struck that addresses borrower’s financial distress and protects the family home, while also reinforcing debt service discipline. An orderly phasing out of the costly Eligible Liability Guarantee Scheme would improve bank profitability and thereby support lending capacity.

Market conditions for Irish bonds are much improved, bringing benchmark 8-year yields below 5 percent, underpinned by Ireland's robust policy implementation under its EU-IMF supported programme. Significant yield declines also reflect the euro area leaders' statement on June 29 and the ECB's announcement of Outright Monetary Transactions in early September. Ireland has started to regain market access, including through government bond issues. This achievement, despite Ireland's still rising public debt, underlines investor confidence in Ireland’s capacity to implement adjustment policies as well as market expectations of European support for Ireland. Nonetheless, significant risks remain along the path back to full reliance on market funding, requiring continued determined policy efforts by the Irish authorities.

The key objectives of Ireland’s EU-IMF supported programme are to address financial sector weaknesses and put Ireland’s economy on the path of sustainable growth, sound finances and job creation, while protecting the poor and most vulnerable. The programme includes loans from the European Union and EU member states amounting to €45 billion and a €22.5 billion Extended Fund Facility with the IMF. Conclusion of this review would make available a disbursement of €0.9 billion by the IMF and €0.8 billion by the EFSM/EFSF, with EU member states expected to disburse a further €0.5 billion through bilateral loans. The next review mission is scheduled for January 2013.