In this week’s public policy bulletin, we take a look at the latest ECB interest rate hike together with economic statistics for the Eurozone from Eurostat. We also examine the latest on the Government’s Ukraine Credit Guarantee Scheme as well as the CSO’s unemployment rate statistics for January. In Northern Ireland, we take a look at current enrolments in the Essential Skills programme, and in Europe we outline details of the EU Commission’s new approach to enforcing GDPR compliance across the bloc.
ECB raises interest rates again
The European Central Bank has again hiked its interest rates – this time by half a percentage point, raising its headline lending rate to 3 percent. Moreover, the ECB signalled its intention to raise interest rates by a further 0.5 percent next month. In a press release issued by the bank, the Governing Council outlined its view that “keeping interest rates at restrictive levels will over time reduce inflation by dampening demand and will also guard against the risk of a persistent upward shift in inflation expectations”. The bank confirmed its intention to “stay the course in raising interest rates significantly at a steady pace and in keeping them at levels that are sufficiently restrictive to ensure a timely return of inflation to its 2% medium-term target”. You can read the full press release here.
Eurozone economy avoids contraction as a result of Ireland’s strong performance
According to Eurostat, the official statistical office of the EU, the Eurozone avoided recession last year largely thanks to a better-than-expected economic performance from Ireland. Despite growth contracting in Germany (Europe’s largest economy) by 0.2 percent, the Eurozone’s overall growth figure for last year rose to 3.5 percent – outpacing both the US and China. Without Ireland, the eurozone economy would have contracted by approximately 0.1 percent. You can read the full statistical release here.
BOI announced as first official lender in Ukraine Credit Guarantee Scheme
Bank of Ireland have been announced as the first official lender to the market for the Ukraine Credit Guarantee Scheme. Launched as part of the government’s strategy to assist businesses effected by the crisis in Ukraine, the Ukraine Credit Guarantee Scheme will facilitate up to €1.2 billion in lending to eligible businesses. Some of the key features of the new scheme include:
- no personal guarantee or collateral required for loans up to €250,000
- loans of up to €1 million, for terms of up to 6 years
- reduced interest rates (vs standard market rates)
- available until 31 December 2024 and includes famers, fishers and small mid-caps
The scheme is open to SMEs, primary producers and small mid-caps (defined as businesses with up to 499 employees). In order to qualify for the scheme, the borrower will have to declare that costs have increased by a minimum of 10 percent on their 2020 figures and that the loan is being sought specifically as a result of difficulties being experienced due to the Ukraine crisis. Further information on the scheme can be found om the Department of Enterprise, Trade and Employment website.
Unemployment rate for January 2023 was 4.4 percent – CSO
The latest statistical release from the CSO on unemployment in Ireland recorded a rate of 4.4 percent in January 2023, a drop from the rate of 4.9 percent seen in January 2022. Breaking down this figure in more detail, the seasonally adjusted number of persons unemployed totalled 118,300 in January 2023 – with 58,700 of these comprising unemployed males and 59,600 comprising unemployed females. The report also recorded an increase in youth unemployment (persons aged 15-24) which rose to 10.4 percent, a 0.2 percent rise since December of last year. The full statistical release can be found here.
Enrolments in ‘Essential Skills’ courses up after several years of decline – NI Department of the Economy
Enrolments in essential skills courses, funded by the Department of the Economy NI, have increased in 2021/22 following a number of years of declining registrations. Established as part of the Department’s strategy to improve adult literacy, numeracy and ICT skills, essential skills courses are delivered by accredited tutors working in Further Education (FE) Colleges, private training providers and community organisations. According to a bulletin issued by the Department this week, the previous decline in enrolments arose for a variety of reasons, including a dip in the 16-19-year-old population (the main age group taking essential skills courses), improvements in GCSE grades, as well as Covid-19 related grading arrangements/restrictions. Figures show that while the number of enrolments fell each year from 30,430 in 2017/18 to 23,825 in 2020/21, an increase of 0.5 percent was recorded in 2021/22 bringing new enrolments up to 23,932.
European Commission steps up reporting requirements for data protection regulators
Following a complaint from the Irish Council of Civil Liberties (ICCL) to the European Ombudsman, the EU Commission has this week committed to monitoring the progress of every large-scale GDPR case that arises across Member States. According to the Commission, it will now measure how long each procedural step in a case is taking by requesting regular reports (every 2 months) on what steps the relevant data protection authorities are taking to progress the case. While the results of the reviews will be strictly confidential, the specific kinds of data received will be published by the Commission.
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