Visit of Ms. Neelie Kroes, EU Commissioner for Competition Policy

Posted on 20/07/09 by Mary Coughlan
The Tánaiste and Minister for Enterprise, Trade and Employment, Ms Mary Coughlan, T.D., met with Ms. Neelie Kroes, EU Commissioner for Competition Policy. The meeting follows a previous meeting between the Tánaiste and Commissioner Kroes in Brussels earlier this year in relation to the community state aid rules system. The new flexible state aid rules has enabled Ireland to provide for additional funding for enterprise support to internationally traded companies struggling as a result of the recession.

Welcoming the Commissioner on behalf of the Government, the Tánaiste availed of the opportunity to discuss EU current and future issues with the Commissioner including the possible further adaptation of state aid rules to Irish circumstances. The Tánaiste thanked the Commissioner for the very good engagement with her officials and for the ongoing exploratory discussions with Departmental officials in that regard.

The Commission's approval of a Irish scheme under its Temporary Framework on State Aid in April this year paved the way for the introduction of the Enterprise Stabilisation Fund. The Fund, which is being administered by Enterprise Ireland, will allow aid not exceeding €500,000 to be given to companies that were not in difficulty before 1 July 2008 i.e. before the current economic crisis.

The Fund will provide an additional €100m in assistance in 2009 and 2010 to companies to strengthen their business base. Particular attention is being paid to supporting viable small and medium sized enterprises which are internationally trading. Aid will be provided primarily in the form of repayable preference shares.

The Tánaiste also apprised the Commissioner on developments since the launch of the Fund. The Tanaiste commented that "I have no doubt that the Fund will play a major role in assisting viable yet vulnerable SMEs to survive the current global downturn by supporting their drive to reduce costs and gain sales in overseas markets and to sustain employment" She again thanked the Commissioner for the prompt approval of the scheme.

In reference to the forthcoming Lisbon Treaty Referendum, the Tánaiste said that "The EU's great strength lies in the ability of Member States to support one another. In this time of crisis and economic upheaval, the EU is endeavouring to work in a coordinated way to restore confidence and bring about recovery. The Tánaiste went on to say that "The central objective of the Lisbon Treaty is to ensure that Europe has the cohesion and the institutional structures to tackle the global challenges that lie ahead. Under the Lisbon Treaty, competition will also continue to be a cornerstone of the European Union and a driving force for the smooth operation of the internal market."