I am delighted to have this lunch opportunity to celebrate an early St. Patrick’s Day here with you in Helsinki.
I would like to start by speaking briefly about Ireland’s current economic performance.
It is no secret that Ireland over the last few years has experienced intensely difficult economic challenges. The Irish economy was adversely affected by the global financial crisis, fiscal imbalances and by the recession that followed. As a small very open economy highly dependent on exports, we were very vulnerable to any global downturn.
I know many in the audience will recall their own similar economic difficulties in the early 1990s and the hard unpopular choices that were made then to restore the Finnish economy to its current strength.
In Ireland, we also know what needs to be done, and the Government has taken, and continues to take, tough and decisive action to stabilise the economy. I am pleased to report that the latest economic indicators clearly show that our efforts are yielding positive results.
Our objectives have been to bring stability to the public finances, recapitalise the banks and improve our competitiveness in order to deliver sustainable employment.
Our banking sector has been significantly restructured and deleveraged. Considerable progress has already been made in fiscal consolidation and this was indicated by a balance of payments surplus last year.
We, of course, recognise that more hard decisions need to be made, if we are to meet our target of reducing the government deficit to below 3% of GDP by 2015. However, we continue to make or exceed our readjustment targets.
For the first time since 2007, the Irish economy returned to growth in 2011. It is forecast to continue this year and to strengthen in the coming years. Growth will be driven primarily by the export sector, reflecting significant competitiveness improvements in recent years.
The Government’s determination to face up to the difficult economic challenges is paying dividends. In 2011 Irish merchandise exports were at an all-time high, driving the path to renewed growth.
Economic recovery in international markets is fuelling increased demand for Irish products and services. Irish companies are widening their market reach, expanding into new international markets and opening up new business. Multinationals are increasing their foreign investment in Ireland and their exports from their Irish operations.
As Minister for Small Business, I am well aware of Finland’s success in growing its economy from the recession of the 1990s by focusing on innovation and investment in the knowledge economy. We in Ireland are also committed to enabling our SMEs to grow and prosper through innovation and exports.
We see Finland as a role model both in Europe and globally, for its strategic policy of significant R&D investment and its support for home-grown innovation. Indeed part of my visit to Finland today is to see how some of your best practices could be translated into an effective Irish industrial policy framework.
As two countries dependent on exports for growth, I was pleased to see that our joint initiative, along with some other EU Member States, to expedite the full implementation of the Single Market, including the Digital Single Market, was fully endorsed by the EU Informal Council.
In addition, our proposals that SMEs should urgently get greater access to finance, with less red tape, in order to enhance their ability to grow and create jobs in our respective countries, was also adopted. The specific measures agreed to promote growth should ensure that the 23 million European SMEs will remain the backbone of economic success and the key provider of new jobs in our economies.
My visit today also signals the continuing importance of Finland as a market place for Irish goods and services. It is a further demonstration of my Government’s support to Irish companies, who are building these commercial connections to deliver on this potential.
Companies such as CRH, Kingspan, Barclays Chemical and Softco are increasing their presence in Finland. I would very much like to acknowledge the work of Enterprise Ireland, the Irish Business Club and the Irish Embassy for their efforts to promote bi-lateral trade between both our countries.
Customer/supplier partnerships and strategic alliances are increasingly crucial in developing worldwide business and Irish companies have already proven that they make excellent partners. Enterprise Ireland is always pleased to assist companies – Finnish and Irish – to put together alliances and partnerships that can unlock new business opportunities. They hope that this event today will be conducive to this.
In summary, Ireland is very much open for business, we are confident that our economy is meeting current challenges and we appreciate your support in this, one of our key trading markets.