Taoiseach Enda Kenny today addressed a Reuters media event in London, speaking on "Ireland Trading Its Way to Recovery". In his speech, the Taoiseach remembered the visit of Queen Elizabeth II:
We have seen some very remarkable developments, in a relatively short period of time.British-Irish relations.It would be remiss of me, today, not to highlight the spectacular success of Queen Elizabeth’s visit to Ireland last year.It might be easy to miss, or to dismiss, the significance of this visit. After all, what could be more normal, more ordinary, than a visit by a head of State to a neighbouring country.
But that would be to ignore the long and troubled past that lies behind the relationship between our two nations. A past that, happily, no longer dominates or dictates the terms of that relationship.
Suffice to say that this was the first visit by a reigning British monarch in 100 years.
Looking forward, I am confident that the visit represents a fantastic platform from which to begin to build the next phase of the relationship between our two countries.
The Taoiseach also addressed the situation in the eurozone for both Britain and Ireland:
Although our starting points are very different, we are both determined to move the Union beyond the current economic crisis and back on to the path of recovery and growth. How to achieve this will be a key issue on the agenda when I meet Prime Minister Cameron today.
We will discuss progress on the new ‘Agreement on Reinforced Economic Union’ on which good progress is being made. As I said in December, I am of course disappointed that it wasn’t possible to find a basis on which to proceed at 27.
But I am happy that the UK is at the table as an observer. In this, as in all areas of Union life, Britain has an important contribution to make and, as Prime Minister Cameron has made clear many times, resolving the crisis in the euro area is a vital concern for all EU Member States, not just for those that share the currency.
He spoke of the state of Ireland's public finances:
I believe that, in the ten months that my Government has been in office, we have taken credible, decisive and effective action to deliver both on our own economic commitments and on the requirements of our EU-IMF funding programme.
We renegotiated the terms of that programme to avoid having to increase income tax.
We protected our 12.5% rate of Corporation Tax.
We put in place measures to help trigger activity in our deeply subdued property market (such as incentives for first time buyers and adjustments to Capital Gains Tax).
Our budget deficit for 2011 was better than the target set under the EU/IMF programme and we have adopted a budget that will see us meet our 2012 target of 8.6%.
When the 2012 Budget package is taken into account, Ireland will have implemented consolidation measures amounting to in excess of 15% of GDP since 2008.
The Taoiseach continued:
My Government’s responsibility goes beyond simply delivering the numbers. We have to do so in a way that is least damaging or restrictive to the economy, that boosts competitiveness, and that provides the foundation for increasing employment.We are starting to see positive results. Ireland’s competitiveness is improving significantly. We returned to growth in 2011, for the first time since 2007. We had a current account surplus in 2011, the first in over ten years..
These are all positive indicators of progress, despite the fact that significant challenges remain.
We continue to have an exceptionally young, well-educated workforce. Unit labour costs have reduced significantly over recent years. We remain fully committed to our 12.5% Corporation Tax rate.
According to the World Bank’s annual “Doing Business” report for 2011, we provide the most supportive business environment in the euro area (and are ranked 9th globally).
The Taoiseach concluded:
I don’t underestimate the scale of the challenges that remain.
But by nature I am an optimist. And optimism, confidence and enthusiasm are essential ingredients as we face the future.
As an exceptionally open economy, Ireland is more exposed than most to the ups and downs of the global economy.
Above all, we need to see a resolution of the crisis in the euro, and a return to growth across Europe and beyond.
For my part, I am determined that we will continue to take the steps necessary to rebalance our public finances, to rebuild our banking system and to generate jobs.
Read the Taoiseach's full speech here.
Watch a clip from the Taoiseach's speech, courtesy of Reuters, below: