Update: Economic Growth Throughout Eurozone – Finance 2nd October, 2014

QUESTION NO:   73
DÁIL QUESTION addressed to the Minister for Finance (Deputy Michael Noonan)
by Deputy Bernard J. Durkan
for WRITTEN ANSWER on 02/10/2014  

 To ask the Minister for Finance the extent to which economic growth throughout the Eurozone can be encouraged without creating inflation; and if he will make a statement on the matter.
 
REPLY.

The pace of economic growth in the euro area stalled in the second quarter of this year. The objective is now to boost the pace of economic growth and to increase the rate of inflation, which is currently excessively low.

There are a number of dimensions to this. Firstly, the European Central Bank has adopted a loose monetary policy stance, designed to raise economic activity and reduce fragmentation across euro area financial markets.

On the fiscal side, the pace of consolidation is slowing, in aggregate terms, across the euro area, and this is appropriate. In addition, a greater focus is needed on the implementation of structural reforms to foster growth and job creation in the euro area.

Finally, a number of initiatives are being examined to boost the level of investment in the EU including the use of EIB capital, how to better use public funding as well as a €300 billion investment package proposed by European Commission President-elect Jean-Claude Juncker. These issues will be dicussed at the upcoming European Council meeting in October.