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Speech by An Taoiseach Enda Kenny, T.D.
European Financial Forum 2016
Dublin Castle
Wednesday 27th January 2016
Opening remarks
Distinguished Guests, Ladies and Gentlemen, good morning.
I’m delighted to welcome you to the inaugural European Financial Forum. I especially want to welcome the many delegates here today who have travelled from overseas.
I hope your visit to Dublin will be both productive and enjoyable, and that you have an opportunity to experience what Ireland has to offer.
Acknowledgements
I want to acknowledge the leadership role that Minister Simon Harris has played in instigating this event – and indeed for his vision and energy in driving the Government’s International Financial Services strategy.
I also want to thank IDA Ireland, Enterprise Ireland and the Financial Times for their roles in organising this inaugural European Financial Forum here in Dublin.
Objective of the Forum
Dublin Castle, our venue for today’s Forum, happens to be one of Ireland’s most historic buildings, and has been at the epicentre of many important historical events. This year, the Castle will be central to Ireland’s Centenary commemoration of 1916 – a pivotal year in our nation’s history.
Today, however, we meet here to look towards the future, in the company of some of the most influential thinkers, influencers and practitioners in the world of international financial services.
From an Irish Government perspective, this Forum is an opportune time not only to reflect on the important contribution that Ireland’s international financial services sector makes to our own economy, but also the significant imprint we make on the industry globally.
This is also a time for reflection at both European and global level.
From a European perspective there are a variety of issues which must be addressed if Europe is to remain competitive in an increasingly globalised world.
Weak demand, slow growth and low investment present a risk to European stability and social cohesion. The negotiation on the future of the UK in the EU also brings with it further challenges and, as our nearest neighbour and largest trading partner, this debate is of particular interest and relevance here in Ireland.
We also need to work at an international level to ensure a financial system that is stable, robust and dynamic, and a financial services industry that is fit for purpose for the 21st Century. The experienced speakers today will be reflecting from a European and indeed global perspective on the policy, regulatory and industry challenges for financial services.
My focus today will be to talk to you about the issues and priorities facing me as both Taoiseach of Ireland and as a member of the European Council.
Keeping the Irish Recovery Going
You’re visiting at an important time in Ireland’s recovery.
Today, as we approach the end of a five year term in office, Ireland is the fastest growing economy in the EU – a considerable achievement considering the huge economic challenges this Government inherited upon entering office in 2011.
We have substantially repaired our public finances and market confidence is restored. We expect to fully eliminate the national deficit next year in 2017.
Our competitiveness continues to improve. Ireland has improved from 24th in the IMD ranking in 2011 to 16th in 2015, while we have moved up to 17th in the World Bank survey on Ease of Doing Business.
Exports by Irish-owned companies reached a record high of over €18 billion last year. We also continue to perform exceptionally well in attracting foreign direct investment, with a record number now employed by overseas companies located here.
Ireland’s appeal as a location for foreign companies is compelling, consistent and longstanding. The IBM Global Location Trends report, for example, consistently ranks Ireland among the most attractive destinations in the world for Foreign Direct Investment.
In our story of recovery, the most important statistic to report is that unemployment has fallen from a high of 15.2% at the peak of the crisis to 8.8% most recently.
Of course, none of this progress has happened by chance. It is the result of the hard work of the people of Ireland, and it is the result of ambitious Government policy, effectively implemented.
We are now at a cross roads in our recovery. But the Government that I lead has a long term economic plan to keep the recovery going which includes three steps:
1. More and better jobs;
2. Making work pay and;
3. Investing in better services.
With over 135,000 more people at work since we came into office we are now targeting 200,000 jobs by 2020.
More people in work creates the resources to cut taxes for working people and invest in better services, improving living standards for all.
This will ensure more people feel the benefits of a recovering economy in their own lives.
We'll continue to make responsible and sensible decisions to keep the economy strong and the recovery going.
This is why supporting sectors like international financial services are of such importance.
Our priority now is to maintain and build on this success, and ensure that we remain a location of choice for investment and job creation by companies from around the world – including those represented here today.
Importance of International Finance Services to Ireland
Ireland enjoys a world-class record in attracting inward investment – with a highly-educated, inquisitive and adaptable people, a highly-competitive and transparent corporate tax regime, strong supports for research and innovation activities, and a business-friendly environment.
We are proud to host over 1,000 foreign-owned companies here, including many of the world’s leading players in financial services. These companies, many of whom are represented here today – have achieved global success in their respective fields – in banking, insurance, funds and asset management, aviation finance and leasing, and FinTech.
Our many world-class Irish-owned financial services companies are at the forefront of driving innovation in financial services globally, in areas like payments, FinTech, data analytics, and so on.
IFS2020
To maintain and build on our competitive strengths, we have put in place a Government-led strategy for developing the International Financial Services sector here. Our objective is to drive sustainable growth in the industry, with a focus on increasing the number of people employed in the sector by 30% over a five year period.
Less than twelve months into this process, we are firmly on track. In 2015 alone, employment in the International Financial Services sector grew by 7.4%. This progress is the result of a focused and strategic approach by Government and our public sector, working in partnership with the International Financial Services industry.
This year looks like being another very promising year for our International Financial Services sector. Indeed, just this morning I announced the creation of 100 new jobs at the Dublin offices of Credit Suisse – high-quality jobs delivering Prime Services through a state-of-the-art trading facility.
This is another example of the important role that International Financial Services is playing in our Long Term Economic plan to sustain Ireland’s broad-based economic recovery.
I don’t need to remind anyone here that the financial services sector is subject to intense and often disruptive drivers of change: technological innovation, global competition, and an evolving regulatory framework. This requires companies to develop and transform their business models and, as a consequence, the type of people that they hire.
As so many employers here today can attest, the Irish people – their talent, skills, attitude and adaptability– are second to none. These are core competitive advantages that we in Ireland depend on for our success.
Ireland as a gateway to Europe and the world
As the only English-speaking country in the Eurozone, Ireland is an ideal gateway to Europe - one of the largest economic entities in the world, with a market of over 500 million consumers.
The industry in Ireland is, of course, very much shaped by our membership of the European Union and the Eurozone, where important legislative, institutional and regulatory reforms have been put in place over the last number of years.
These changes have helped reshape the financial system – and the delivery of financial services – for the better.
We also have a focus on the need to further drive the connectedness of the global economy through continuing to reduce barriers to trade, investment and the flow of ideas across borders. From an Irish and EU perspective, the timely completion of the Transatlantic Trade and Investment Partnership (TTIP) agreement is a priority in this regard.
Conclusion
So these are challenging times for political leaders, for you as leaders of business and indeed for the global community as a whole.
I know that the intention is that this Forum will facilitate high level discussion and debate on some of the key challenges facing the financial sector.
Given the calibre of the speakers and participants I have no doubt this will be both challenging and stimulating. I wish you well with what is sure to be a fascinating Forum.
For the Government’s part we will continue to implement our Long Term Economic Plan to keep the Irish recovery going and to support a strong and innovative International Financial Services Industry.
Thank you.