The Government has secured concessions from the troika that some proceeds from an “ambitious” programme of State asset sales will be reinvested in the economy and not just used to pay down debts.
At the most recent review of the bailout last month, the Government had said it had managed to negotiate with the troika that the proceeds from the sale of State assets would go towards job promotion, but the EU Commission official refused to confirm whether this was the case.
The latest troika agreement, however, says proceeds from the sale of State assets would improve competitiveness in the economy, reduce the State’s financing needs and “provide additional resources for reinvestment in the economy”.
Minister for Public Expenditure and Reform Brendan Howlin is now engaging with the troika on the extent of funds generated by the sale of State assets that can be reinvested. The Minister has said in the past that he expects the proportion to be sizeable.
Mr Howlin will bring forward proposals to the Cabinet on potential assets for sale in the coming weeks.
“This is a step forward. It’s something the Government very much welcomes,” a spokeswoman for the Department of Public Expenditure said.
The updated MOU (memorandum of understanding) also shows the Government has promised to provide the troika with details on action taken against unemployed people who fail to attend activation interviews with State agencies.
Under the National Employment Action Plan (Neap), individuals in receipt of jobseeker’s benefit or jobseeker's allowance who have been on the Live Register for three months are identified by the Department of Social Protection and referred to Fás for an activation interview.
However, an ESRI study last year concluded that the Neap interview process was an ineffective route to employment.
The Government also pledged to take steps to strengthen activation and training policies to help jobseekers get back to work.
The document sets out all the conditions, quarter by quarter, with which Ireland must comply in order to qualify for financial assistance from the troika.