Taoiseach’s Speech to US Chamber of Commerce, Washington DC

Distinguished guests, ladies and gentlemen, I’m delighted to be with you. 

Happy St. Patrick’s Day albeit belated. 
I hope you celebrated in style yesterday.

There’s something about St Patrick’s Day coming as it does around the time of the Spring Equinox.

A time when we look ahead to the brighter, warmer days.

When we consider the winter we have come through and imagine the welcome possibilities of the Spring and then the Summer ahead.

And there’s something in that for Ireland. 

Because we have made and survived what was a bleak winter’s journey. 

Now because of the sacrifices we have made the course we have set we are emerging at last into the light and warmth of new possibility not alone for our economy but those for whose goodness it exists first and always our people themselves. 

Irish Economy
As you know, I came to Office at time of crisis for our country.

Jobs were being destroyed by the thousand, our public finances were out of control and our banking system was on the brink of collapse.

Our task was to rebuild our economy, reorganise the banks and restore our international reputation.

This week, as we celebrate our national feast day, I’m proud to tell you that we have made clear and significant progress on all three. 

The terrain we have covered has been always difficult sometimes hostile. But we have left behind the worst of the dangers and though there is still a way to go our path is easier and more secure. 

Since taking office, my Government has made sure to provide three things:

Strong leadership, clear vision, and a strategic economic plan for Ireland. And because we have I’m happy to say that we have moved away from a situation of chronic contraction.

To one where stability and growth now define our economy. 

Not all changes have been achieved not all challenges have been met but progress is steady. We are heading in the right direction. 

It is the indomitable spirit of the Irish people that brings us all here today. The same spirit that has seen our people make and accept the huge sacrifices we’ve asked of them for the sake of a better more prosperous future for them and for their families. It is thanks to their patience their dignity their sacrifice that we are now on that better, more sustainable path.

After a long period of contraction our economy is growing for the third consecutive year. Our competitiveness is up.

Costs and prices have fallen back to 2003 levels. 

Our successful phased, return to the bond-markets is continuing. International confidence in Ireland once so shaken has now been restored.

In the second-half of 2012 the numbers at work in the economy rose over a six-month period for the first time since 2008.

Our people are at last starting to go back to work the dignity of having a job is being returned to them. 

Fiscal Stability
To restore order to the public finances the Government has undertaken significant fiscal consolidation – equivalent to almost €15,000 for every family in Ireland. 

We remain on target to reduce our deficit to below 3% of GDP by 2015.

International market-sentiment towards Ireland has improved significantly.

Last year we issued almost €7 billion of treasury bills and bonds. Last week, we sold €5 billion of new 10-year bonds – the first time we have been able to issue long-dated debt since 2010.

Long-term Government bond-yields are now at less than 4 per cent…. down from a peak of more than 14 per cent.

Last month we announced a new solution on legacy banking-debt to ease the legacy burden on Irish taxpayers from having to rescue our banking system.

This reduces our the State’s borrowing requirement by €20 billion over the next ten years.

It is a historic step one that brings Ireland further along the road to recovery reducing the burden on taxpayers, injecting stability fostering even greater confidence.

When a bank fails in Ireland or Spain – unlike Texas or New York – it is the taxpayers of individual European States alone that are exposed to the costs.

This fragmentation of Europe’s banking systems, and the vicious circle this creates between sovereign and banking debt crises, has been a central cause of the eurozone debt crisis.

We are now moving on to ensure the implementation of the Euro area Heads of State and Government Agreement…. to sever the toxic link between banking and sovereign debt.. 
Thus improving the sustainability of Ireland’s adjustment programme. 

We will work with our colleagues in Europe to achieve a real Banking Union…Including early adoption of the Single Supervisory Mechanism. 

And real and concrete progress on the other elements of Banking Union.

Perhaps most importantly, we are determined to exit the external financial-assistance Programme before this year is out. 

Harnessing Growth / Action Plan for Jobs
Yes we’ve had to make difficult choices unpopular choices.

But we’ve had to in order to optimise the conditions for growth. 

Growth that will bring that all-important trade and investment and with it opportunities for jobs and work. 
Central to this is my Governments’ multi-annual Action Plan for Jobs process. 

Each Action Plan is a clear statement of the Irish Government’s ambition.
• To create the environment where the number of people at work will increase by 100,000 net by 2016. 
• To get Ireland back to a top-5 ranking in international competitiveness.
• To build world-class clusters in key sectors of opportunity.
• To build up the export market share of Irish companies. 
• To become the best small country in which to do business 

One year into our comprehensive strategy the outcomes are encouraging.

As I said, Ireland has restructured its cost base. Costs and prices have fallen back to 2003 levels.

Ireland is rebuilding its competitive position. Our competitiveness vis-à-vis our trading partners has improved by over 20% since 2009.Ireland is reorienting its skills base. 

We are now ranked number one in the world for the availability of skilled labour.

This is all welcome and impressive in itself but it is absolutely crucial in terms of our key concerns: creating jobs sustaining jobs.

FDI
Ireland is home to more than 1,000 global companies.

Many are world leaders in sectors such as life-sciences, ICT, financial services and digital media. 

And of course, many of these originated in the US. 

2012 saw the highest number of net, new jobs in multi-national companies in Ireland, in ten years. 

Not yet past quarter one of 2013 we have seen a number of highly-significant, foreign-direct investments from companies including Quantcast, Facebook, eBay and Sanofi. 

These announcements follow on from investment in 2012 by companies including Apple, PayPal, Northern Trust, EA Games, Fidelity, SAP, Amgen, Cisco, Arvato, Allergan and Eli Lily. 

A notable feature of the last 12 months has been the wide range of green-field investments coming to Ireland including Clear Stream, part of the Deutsche Bourse Group, Hubspot, Dropbox, Aspen and Nuance. 

In recent years, we have also broadened our focus, embracing not just large multinational corporations but working closely too with fast-growth companies who aspire to be the multinationals of the future. The results of this can be seen with investments in Ireland so far this year from Etsy, PE Lynch, Loop 1 systems and 10 Gen.Ireland’s attractiveness for FDI from a global perspective continues to improve. 

The IBM Global Locations Trends report ranks Ireland the top destination country for FDI. 

The IMD World Competitiveness Year Book rates Ireland the most attractive country to foreign investors for investment incentives. 

Government policy in relation to the 12.5% rate of corporation tax is clear and consistent. Budget 2013 reaffirmed the Government’s policy in relation to the 12.5% Corporation Tax rate. I would like to again reiterate that the Government of Ireland remains 100% committed to maintaining the 12.5% Corporation Tax Rate. Ireland offers a transparent corporation tax regime accompanied by a rapidly growing network of international tax treaties with full exchange of tax information.

The Irish Government will do all in its powers to maintain an environment where foreign companies can do more and better business. We are fully committed to maintaining Ireland’s competitive advantage and working to further improve our FDI-friendly pro-business environment.

Ireland exports 80% of everything it produces and sustaining and growing exports is a key ingredient in securing economic recovery. 

Indigenous companies
In addition to our success in securing foreign direct investment our Irish companies have developed unique strengths and capabilities to compete globally across a range of sectors. 

In the US, our Enterprise Agency -Enterprise Ireland- is forging business partnerships in key growth-areas such as Lifesciences, Green Construction, Information Technology, Telecommunications, ELearning and Higher Education. 

The exports of Irish-owned companies to USA increased by 16% in 2011.

Last year saw Irish companies deliver their highest, net, jobs -gain since 2006. 

The Irish Government is committed to building on the progress made to date through the roll-out of Action Plan for Jobs 2013, with the application of the same leadership, ambition and determination. 

The 2013 Plan was published last month and sets out the next suite of actions across government which provide real opportunities for job retention and growth. 

However, as well as our strong focus on rebuilding the domestic economy, this current six months is a very significant time for us at European level as we currently hold the rotating EU Presidency.

EU Presidency and EU-US Free Trade AgreementAnd we have firmly placed Stability, Jobs and Growth at the core of our efforts. 

However, we recognise that as much as 90% of that future growth across the globe will be generated outside of Europe. 

Enhancing trade is one of the few ways to bolster much-needed economic growth without drawing on severely-constrained public finances.

Advancing the external trade agenda therefore features prominently on the Irish Presidency programme.

It is no secret that within the broader EU trade agenda, Ireland has prioritised the EU-US trade relationship.

The fact is the EU and the US enjoy the most integrated economic relationship in the world. 

Our economies account for about half the entire world GDP.

And for nearly one-third of world, trade-flows. EU investment in the US is around eight times that of EU investment in India and China put together. 

Total US investment in the EU is three times higher than in all of Asia. 

The transatlantic relationship defines the shape of the global economy as a whole. 

Either the EU or the US is the largest trade and investment partner for almost all other countries in the global economy. 

It is therefore not surprising that releasing the further untapped potential of the EU-US trade relationship is what would provide most benefit in terms of growth and jobs, on both sides of the Atlantic.

Our trade relationship has an enormous potential far, right now from being fully exploited. 

Currently 15 million jobs depend on EU-US trade. 

That is 15 million people either employed by European companies in the US or by American companies in the EU.

Just imagine what this number could be if we released the true potential of transatlantic trade! 

The bottom-line is that both the EU and the US have a lot at stake and can ill afford to ignore this unique potential for growth. 

As more and more production flows from the US and the EU to emerging economies we must face facts. In order to remain competitive in the global economy Europe and the US must innovate.

Long-term evidence shows that the flow of trade and investment help spread new ideas and innovation, new technologies and the best research, leading to improvements in products and services. 

Given these enormous benefits, I am delighted that a real momentum to advance transatlantic trade is emerging. 

In February, the European Council gave a strong endorsement to move the EU-US trade relationship forward to the next level and a few days later President Obama called for the launch of negotiations on a Transatlantic Trade and Investment Partnership with the EU in his State of the Union address. 

In a joint statement with the Presidents of the European Commission and the European Council, President Obama stressed that through this negotiation, the United States and the European Union will have the opportunity not only to expand trade and investment across the Atlantic but also to contribute to the development of global rules that can strengthen the multilateral trading system. 

The EU needs to agree to a negotiating mandate and on this end the notification to Congress triggering a 90-day layover period must be sent. I am keenly aware of the fact that there will be difficult choices for both sides to make once talks get underway in earnest. 

Given the low average tariffs, the key to unlocking the potential of our trade relationship lies in the tackling of non-tariff barriers. 

These consist mainly of customs procedures and of diverging regulatory systems but also other non-tariff measures, such as those related to certain aspects of security or consumer protection.

There will be difficult bridges to cross in the areas of health and safety standards, public procurement and agriculture.

But I am convinced that if both sides take an open and flexible approach, we will be able to agree on convergence on regulatory issues – effectively setting the standard for world trade. 

I am equally convinced that an ambitious, comprehensive and far-fetching agreement on trade and investment between the EU and the US will not only trigger economic growth in our respective economies. 

It will also send a strong signal of leadership to other economic powers. I believe we are firmly on track to achieve the Irish Presidency goal of getting ready to launch Trade and Investment negotiations by the end of our Presidency. 

I for one will do all in my power to meet this ambitious target.

Conclusion
So in conclusion my message to you today is that Ireland is making very significant progress towards a sustainable economic recovery.

Increased competiveness means that there has never been a better time to invest in Ireland.

And I can assure you now that I will do all I can to progress an EU-US Free Trade Agreement for the mutual benefit of our two great economies.

I hope to be able to count on you, leaders of American industry, to support President Obama in getting Congress’ support for this very crucial trade deal.

Thank you