Syndicated Archives - Devine Accountants

Q – I run a butcher shop and while I have ample parking at my shop, lots of people in the area still don’t know I am here, how can I increase awareness?

A – We can talk about the practical marketing tools you can use in a moment, but I want to reflect on the compelling reason that will get customers back again and again.
You need to be clear on what your shop stand for. Is it all about value? Is it about having premium added value ranges? Is it about focusing on health and some of the lower-fat cuts?

Is it about great customer service and advice that your team offer? It could be some or all of the above but it is really important that there is something about your business that stands out from others, otherwise you can be using all the marketing tools in the world, and they won’t be able to get you sufficient business. Word of mouth is the most powerful tool that you have and that is the starting point.
Digital media is obviously a cost-efficient way of getting to consumers and you need to be really active in this area. Whether you are maintaining this digital media yourself or have to get external help, you need to be an active player in this space.

There is still a role for door-to-door leaflets, perhaps once or twice a year, calling out the story of why you are different and offering some price value. Building a text database and using it approximately five or six times per year, has been proven to be a real winner with customers, especially with the meat industry. There is also scope for some softer promotional activity like linking with local clubs and groups to give some advice on meat and perhaps team up with some local chef to run some cookery classes.
I also notice that several of the meat chains are now focusing on the health aspects of their business and are linking up with gyms to give talks and advice on the cuts that suit better from a protein and fat perspective. The meat industry is changing and if you want to succeed, you have to have a finger on the pulse as to where your consumer is heading.

Q – I run a café which is really hard work six days a week. I also supply a number of other cafes and shops with bakery products. I am thinking of closing the cafe in favour of just supplying others. Any advice?
A – It sounds like you are putting in long hours and becoming frustrated with the overall operation.

The decision process you are going through is no different to many others. Sometimes those manufacturing product for third-party supply, see the opening of a cafe as more attractive, and in your case it is the opposite journey.

The core question I would have is why are you working so hard yourself? It is possible that the sales are so low that you are trying to hold everything together and the business is only viable if you put in extended hours. On the other hand, is it the case that you are simply just trying to do everything yourself and not delegating to others?

Be careful that the third-party supply doesn’t appear to be more attractive. It will have its own challenges, not least that as the manufacturer you are likely to make the least amount of profit in the supply chain. You may also have to put a distributor in between you and your cafe and retail customers. So there are lots of considerations.

Contact your Local Enterprise Office and explore the possibility of getting some time with a business mentor, who would help you structure the decision-making process and weigh up the pros and cons of each. It may also be possible to grow the third-party supply business while still running a profitable café.

Certainly don’t make any rash decisions. It is hard work to get a cafe up and running and you have succeeded with this part, so closing it now should involve a robust decision-making process.
Finally, don’t look at the business aspects of the decision-making process alone – also explore what your personal objective is. If you want to limit the hours you are working yourself, then this has to be a core part of the decision-making process, so you can choose a business option that matches your objective.

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There is a “huge opportunity” for Ireland to be at the leading edge of the emerging cyber-security industry, Tánaiste and Enterprise Minister Frances Fitzgerald told delegates at a leading industry conference in Dublin yesterday.

The cyber-security industry employs around 6,000 people here, and the top five worldwide security software companies have operations in Ireland, Minister Fitzgerald said at the Dublin Information Sec 2017 cyber-security event hosted by Independent News and Media (INM).
The ever-increasing threat from hackers means there is an opportunity to create a self-sustaining cyber-security ecosystem here, one where indigenous small and medium enterprises and multinationals could work together, the Tánaiste said.

This represents a chance to make Ireland a real centre of excellence in this space, she added.

The keynote speaker at the event, Jeanette Manfra, who is US Assistant Secretary for the Office of Cyber Security and Communications at the Department of Homeland Security, told delegates that “industry is really on the front lines on this… The challenge for industry is to understand systemic risk from a cyber perspective.”

Delegates at Dublin Information Sec, sponsored by eir Business, a Cisco Gold Partner, heard a panel of Irish and international cyber-security specialists highlight risks and propose solutions to security breaches and infection.
The event was chaired by Adrian Weckler, Technology Editor at INM.

Expert sessions included: looking inside the head of a hacker; improving an organisation’s security health; response and defence; GDPR; Brexit; the US government approach to cyber-security and managing risk; and whistleblowing.
Ethical hacker Mike G told business leaders bluntly that employees remain the big risk to data systems. “The weakest part of security is us,” he said.

Mike G, who helps organisations fight cyber threats, said that humans are very easily hacked while bad systems design and insecure policies leave individuals people and organisations vulnerable.

Spoofing texts, calls and emails are among the most common ways in which people and companies can get hacked, he said.

The outgoing chief information officer at the HSE and chief officer at eHealth Ireland, Richard Corbridge, said staff in Ireland had worked through the weekend in May this year in response to the so called WannaCry ransom attack, which targeted medical systems across Europe, notably the NHS in Britain.
“With WannaCry it was clear we had to act quickly.

“Had something like this landed on a Sunday night in autumn with flu and the week ahead it could have taken years [for the HSE] to recover,” he said.
“We mobilised 38 people to work the weekend and made sure the elements under threat were protected,” Mr Corbridge said, but the biggest fear for him was whether individual hospitals and GPs would be impacted.

“The worst case scenario for the HSE was that we lost any hospitals – the Irish healthcare system cannot afford for any hospitals to close their doors,” Mr Corbridge told the audience.
Preventative measures taken by the team that weekend included taking down the external email for the whole of the HSE to protect it from WannaCry.

In the end only one HSE facility, in Wexford, was affected, he noted, adding that after the incident the HSE has a better way of handling such events.

Article Source: http://tinyurl.com/kbwqb42

Sterling has jumped to a four- and-a-half month high against the euro amid stronger manufacturing data out of the UK.

It comes ahead of a much anticipated Bank of England meeting today in which governor Mark Carney is expected to announce the bank’s first interest rate rise in a decade.
The pound hovered above the 87p to the €1 mark – a level not seen since June – as data showed British manufacturers reported robust growth for October, reinforcing speculation of a rate hike.

Sterling has also gained some ground thanks to more positive soundings over the Brexit talks.
Although the market is almost completely priced in for a rate rise decision from the BoE this week, investors are watching closely for any signs that it could spell the start of a longer-term tightening cycle.

The manufacturing purchasing managers’ index (PMI) from IHS Markit/CIPS rose to 56.3 in October, from an upwardly revised 56.0 in September.
“The three-month average was the highest of the year so far… so the pound rallied,” said Stephen Gallo, European head of foreign exchange strategy at BMO Capital Markets.

The pound also climbed against the dollar, hitting a two-week high of $1.3321, up from $1.3283 before the data.
Board meeting minutes released from the Central Bank yesterday for September highlighted the “relatively sizable fluctuations in the euro/sterling exchange rate”.

“The impact of the weaker sterling had been mainly reflected in Ireland through weaker consumer price inflation, which would have impacted favourably on real disposable incomes and personal consumption,” the report of the meeting stated.

Data for the Irish manufacturing sector showed a weakening in the level of growth, which slowed to the weakest pace in seven months. The rate of job creation picked up, however, and inflation eased slightly.

The seasonally adjusted Investec Purchasing Managers’ Index dipped to 54.4 in October from 55.4 in September.
New orders continued to increase at a sharp pace in October, despite the rate of growth easing from that seen in September. Some panellists mentioned strength in export markets. In fact, new export business rose at the fastest pace in four months.

“The report shows that, despite a recent slowdown, the rate of growth in new orders remains sharp, helped by overseas demand – the new export orders index accelerated to a four month high, with many panellists reporting stronger demand from European and Asian markets,” said Investec economist Philip O’Sullivan.
“In response to this healthy demand, Irish manufacturers continue to add to their headcounts, with the employment index expanding at its fastest rate since June.”

Meanwhile, the Commission minutes also separately noted that the Central Bank believed that while the banking sector here was prepared for Brexit, there were concerns over the readiness of the insurance industry: “Mr [Ed] Sibley [deputy governor] agreed that the level of preparedness within the insurance sector was not where it should be.”

Article Source: http://tinyurl.com/kbwqb42

Working from an island, as exporters do in Ireland, forces us to be more competitive than companies in markets we sell to.

Products and services that businesses develop here must offer customers more value than those of competitors. Irish exporters can’t just be good, they must be better.

Last month, a milestone in achieving that ambition was realised. More than 1,000 companies have used Enterprise Ireland ‘lean business’ supports to take practical steps to become more competitive and improve as exporters.

Improving competitiveness can be a matter of survival in times of crisis, but all companies benefit from learning how to increase profit margins, build skills, reduce waste and increase capacity. Enterprise Ireland’s Lean Start, Plus and Transform programmes help companies at all levels of familiarity to find improvements, from design to manufacturing and service delivery, down to getting money lodged in the bank, through logistics and supply chain.

The results these first 1,000 companies have reported show that applying lean is a practical way to improve competitiveness quickly. €1.5bn in cost savings have been recorded. Lean is also good for the domestic economy, with participating companies reporting a 10pc increase in employment.
Thermo Air, a manufacturer and distributor of air and heating systems, reduced costs by 8pc after completing Lean Start. “The implementation of lean has been a very positive beginning to a change in the mind-set of our traditional manufacturing company. The future success of the business is on the right trajectory,” it reported.

Lean enabled the company to reduce lead times from six to three weeks, multiplying the number of orders handled.
NutriScience, a manufacturer and distributor of animal supplements, said: “This initiative was a real game changer. We went from being a reactive follower to being a proactive driver.” The company achieved €176k in savings, at 8.6pc of turnover. In addition to a more engaged workforce and a safer work environment, lead time was reduced from an average of eight to a guaranteed three weeks.

WhatClinic.com, a website that helps patients find clinics and book appointments, used Lean Start to implement a pre-sales process that boosted new business by 15pc and increased their renewal rate to over 85pc.
The range of companies applying lean was clear at an event Enterprise Ireland co-hosted with the IDA in Maynooth last month. Speakers included representatives from the smallest companies to internationally award-winning practitioners. The depth of understanding attendees displayed shows that lean has been fully absorbed in Ireland. Experts now travel to Ireland to learn about initiatives SMEs here are implementing. This December, two Irish companies, Phonovation and Topflight, will host visitors from the EU-Japan Centre for Industrial Co-operation as part of a Lean in Europe series of best practice visits.

Reaching 1,000 projects is a high level of adoption but Enterprise Ireland aims to see that figure quadrupled. The take-up rate of Lean Start, Plus and Transform is rising as companies that see initial results progress further and companies yet to start feel the urgency of not being left behind. Other Irish agencies are keen to replicate the success Enterprise Ireland-backed companies have achieved. The IDA and Local Enterprise Offices implemented programmes that show how lean can be applied to make major competitiveness improvements for both multinationals and smaller regional companies. Teagasc and Bord Bia are planning similar initiatives.

Companies interested in joining a programme should visit the Lean Business Ireland website to find detailed information about supports and get inspired by nearly 100 case studies that show the savings and sales lean is already helping competitors to achieve.

Professor Richard Keegan is manager at Enterprise Ireland’s competitiveness department.

Article Source: http://tinyurl.com/kbwqb42

Eurozone economic sentiment rose in October for the fifth consecutive month to reach its highest level since the start of 2001, showing almost no impact from the Catalan crisis, according to European Commission data.

The near 17-year high is the highest reading since January 2001 when the bursting of the dot-com bubble had begun to hit confidence.

The monthly survey showed that sentiment in the Eurozone rose more than forecast on average by economists polled by Reuters to 114.0 points in October from 113.1 the previous month.

Confidence grew markedly in Germany, the bloc’s largest economy, and in Italy, while it declined in France.
Despite the uncertainties surrounding the Catalan crisis, sentiment improved also in Spain, with marked rises in the industry and services sectors. But confidence dropped in the country’s retail sector and among consumers.

Data shows that “political tensions continue to have little effect on economic sentiment this year”, Bert Colijn, senior economist at ING said.
The EU statistics office Eurostat will release preliminary estimates today on the bloc’s gross domestic product (GDP) in the third quarter.

Forecasts by economists polled by Reuters put the expected growth figure at 0.5pc. If the 0.5pc forecast were confirmed by actual data, that would be a slight slowdown from the 0.6pc growth recorded in the second quarter.
But economists remain confident growth will accelerate again in the last three months of the year.

“While the available hard data imply that Eurozone GDP growth slowed a little in Q3, we think that it will pick up again in Q4,” economic research firm Capital Economics said in a note.

In October, optimism in the Eurozone grew in all surveyed economic sectors, jumping to 16.2 points from 15.4 in September in services, the largest sector in the Eurozone.

Confidence in industry grew to 7.9 from 6.7 and the retail sector saw a rise of sentiment to 5.5 from 3.0.
Consumers shared the positive mood, with optimism rising to the highest level in 16 years.

The positive reading for the 19-country bloc sharing the euro was only partly clouded by a drop in inflation expectations among manufacturers to 8.6 from 10.5 in September.
That could potentially curb output in coming months. Manufacturing production expectations dipped slightly, while export order books rose only marginally.

Inflation expectations among consumers continued instead to increase, to 14.7 from 14.2 in September. (Reuters)

Article Source: http://tinyurl.com/kbwqb42

he value of any currency can, and does, fluctuate over time due to the many economic, fiscal or political vagaries that face any economy, and in turn their domestic currency.

The outcome of certain ‘risk events’ can have a material impact on the value of currencies, dependent on the outcome of said events.

The aftershocks of the Brexit referendum are still being felt, with the value of sterling more often than not the first respondent to current Brexit sentiment.

Prior to the Brexit vote in June 2016, Irish exporters were comfortable with the euro trading in a £0.70 to £0.80 range, with limited volatility. Since then, however, sterling has continued to depreciate in excess of 20pc, trading consistently above £0.80, and reaching levels close to £0.93 over the past few weeks. The challenge posed by sterling at these levels is twofold.
Firstly, in the case of longer-term contracts, the euro value of these revenue streams is now significantly less, unless a long-term hedge is in place. For those who have not hedged the value of their sterling revenues, net margins are increasingly squeezed.

Secondly, a greater challenge relates to new tenders where Irish exporters are finding themselves increasingly uncompetitive relative to UK competitors.
Even if the Irish exporter is successful in a tender where margins are tight, the challenge of achieving a profitable contract is more difficult when currency fluctuations can erode profitability.

To help explain some hedging strategies available, imagine you are the chief financial officer (CFO) of a manufacturing company facing currency fluctuations. You have just won a contract to supply a new UK customer, but your customer will be paying you in sterling and as an Irish entity reporting in euro you will have to exchange this sterling for euro. This foreign exchange exposure should ideally be managed in such a way that it doesn’t erode profit margins built into the sale price of the product.
Your UK customer will be paying you £100,000 (€113,000) monthly for 12 months, a total of £1.2m. Your company board has set you a ‘budget rate’ (breathing space in essence) of £0.92 for that exposure against a current market rate of £0.89. So any sterling that you may exchange under the £0.92 level is additional margin/profit, and alternatively any sterling you exchange over the £0.92 level will therefore eat into margin/profit.

In this scenario we present four different approaches.

The first is spot conversion, which risks the greatest exposure to currency fluctuations. In this scenario, the CFO elects to convert currency as and when required during the contract, at prevailing market rates. Such an approach provides no certainty over the euro value of the cash flows for the remainder of the year, and no certainty over profit margins on this contract. In any favourable currency move, the CFO will benefit from the increased euro value of the sterling cash flows, but should sterling continue to depreciate, the contract may become loss-making and, most worryingly, there is no worst-case scenario.

A second option is to use forward contracts. For the period of the contract, the CFO can fix the euro value of sterling revenues using forward contracts. A forward rate is calculated as the current spot rate on the day of execution, adjusted for the interest rate differential between the bought and sold currencies, and is currently below the budgeted rate of £0.92. In this case, the CFO will have certainty of euro cash flows and increased profit margin relative to costing rate, but an inability to benefit further in any sterling appreciation over the period. As part of this approach, the company will require a forward credit line to be provided.
Then there are so-called “vanilla options”, which are similar to insurance premiums. You pay an upfront charge in order to gain the right (but not the obligation) to protect a certain rate for a certain future date. This gives reassurance you have a worst-case rate protected while being able to participate in any favourable market moves. But costs can be high and are dependent on the rate, future date and level of market volatility at the time of execution.

Finally, you could use structured solutions. Similar to vanilla options, these offer you protection at a certain rate at a certain future date. You can utilise that bit of ‘breathing space’ (£0.89 – £0.92) you have to discount the option premium and allow you to participate in some portion of a favourable move in your direction, in order to enhance or improve your overall average rate. There is no ‘up front’ charge and full protection at a worst-case rate, plus some participation in favourable moves. However, the product may have a structure that could push you into execution at the worst-case rate.

Article Source: http://tinyurl.com/kbwqb42

More than half of Irish businesses expect a cyber attack on their operations by the end of 2017 while 36pc have already experienced one this year, according to the results of a new survey.

And significantly, 84pc of businesses see potential attacks as a major threat to their operations, according to the Dublin Information Sec 2017 survey which comes ahead of the second annual cyber security conference on November 1, sponsored by eir.

Dublin Information Sec speakers and running order; Dublin Information Sec 2017 speakers and running order

Paolo Perfetti, CITO, eir and speaker at the event said, “These survey results are interesting but unsurprising – more and more business leaders are recognising the threat posed by cybercrime, and an increasing number have already been directly impacted by such an event. The trends we are seeing are not likely to reverse, so we must get better at raising awareness, building protection and formulating responses. Dublin Information Sec 2017 is an excellent opportunity for the business community to learn from experts in the field when it comes to protecting businesses.”Cliona Carroll, Sponsorship and Events Manager, INM added: “Such is the threat of hacking to businesses that cyber security requires ongoing vigilance and knowledge. Dublin Information Sec 2017 will gather leading experts in the field to highlight current cyber threats.”

While 82pc of respondents agreed that cyber security is a priority at board level, for almost two in 10 businesses, this is not the case. Cyber security staff training is in place at over 50pc of firms but it is not being addressed adequately and this issue will also be addressed at the Dublin Information Sec event at the RDS on November 1.

The results of the survey also show that Irish firms are ill prepared for up-coming new regulations by which the European Parliament, the Council of the European Union and the European Commission intend to strengthen and unify data protection for all individuals in the union.

The General Data Protection Regulation (GDPR) regulations come into force next May and failure to demonstrate compliance could mean exposure of fines of up to 4pc of turnover or €20m, whichever is the greater figure.

The results of the survey show that despite the threats of this exposure, over half of respondents said their company is not prepared for GDPR.

And 32pc of those surveyed, said they were not aware of the implications of the new regulations.

On a broader scale, 91pc of those surveyed believed that Ireland is not prepared for a cyber attack on the State.

This is a growing phenomenon with North Korea linked hackers among the most prolific of nation-state threats and it is an issue that will be addressed by Jeanette Manfra, US Assistant Secretary for cyber security at the November 1 event.

Other speakers include Brian Honan, chief executive at BH Consulting; Joseph Carson, Cyber Security Strategist at Thycotic; Bradley C Birkenfeld, banker and whistle-blower and Daragh O’Brien, Castlebridge chief executive.

Dublin Information Sec 2017, Ireland’s cyber security conference, addresses the critically important issues that threaten businesses in the information age. For more on INM’s Dublin InfoSec 2017 conference, go to: independent.ie/infosec2017

Article Source: http://tinyurl.com/kbwqb42

How to deal with the Border issue post-Brexit looks increasingly intractable.

Foreign Minister Simon Coveney has argued we are on the cusp of agreement on maintaining the Common Travel Area, which will ensure the free movement of people north and south. But maintaining current levels of cross border cooperation and integration, and ensuring the tariff-free movement of goods and business are key issues that so far remain unresolved.

A new report published jointly by the 11 border councils in Northern Ireland and the Republic highlights the economic and trade vulnerabilities in the region in the event of a hard Brexit.

The 46-page study concludes that even without Brexit, the region already suffers problems that could be exacerbated in the event of the UK crashing out of the EU, with productivity a particular issue of concern.

The report notes that in the North, just two local authority areas – Mid Ulster and Armagh City, and Banbridge and Craigavon – have productivity levels that in most years outperform the Northern Ireland average, which itself is behind the rest of the UK. The Republic’s border region not only lags the national average and those for Dublin and the South West, but also other poorly performing regions such as the South East, the report states.

“Despite the fact that the Irish border corridor has received significant amounts of EU and other funding since the 1990s, it continues to lag behind national or regional averages in areas such as productivity and household incomes,” said the report entitled ‘Brexit and the Border Corridor on the island of Ireland: Risks, Opportunities and issues to Consider’

“Given the current levels of cross-border co-dependency across the local authority areas, a poorly managed Brexit could mean economic outcomes where the region falls further behind.”

The report estimates that there are around 87,000 businesses in the border region as a whole, 40pc of which are in the agricultural sector. The report suggests that figure could be greater, as it states that the data excludes the self-employed, where agriculture and construction are particularly strong

Cross-border trade in goods totals over €3bn, the report states. While cross-border goods trade accounts for less than 2pc of Ireland’s total exports, for firms in the border region in the Republic, its importance is central. It’s a similar picture for the UK as a whole. In 2014, 18pc of the Republic’s services exports and 14pc of goods went into the UK. But the share of exports from the Republic’s border counties to the UK in the same year was as high as 33pc – almost twice the national average, the report noted.

Northern Ireland’s exports are also highly concentrated in the at most risk market. In the same year, 58pc of Northern Ireland’s total exports went to the EU, with more than a fifth of those to countries other than the Republic.

Agri-food is one of the sectors that could be worst hit, north and south. The report notes tariffs in the sector could vary considerably. It cites a recent report from InterTradeIreland which stated that the imposition of tariffs could see cross-border trade fall in value by 9pc.

The importance of cross-border trade to small firms, the integration of the agri-food industry and other sectors and the frequency of movement of people, have been helped in recent years by what the report terms “border management”.

This includes cross-border co-operation between business bodies, third-level institutions, the health services and community and voluntary groups.

“The success of any future regime for the management of the Irish Border will be judged not only on how well it answers the political and economic dilemmas caused by Brexit, but also how far it allows the current level of co-dependencies which exist across council areas to continue unhindered,” the report added.

Article Source: http://tinyurl.com/kbwqb42

With so many seemingly attractive offers out there to lure first time buyers it can be hard to navigate the mortgage market.

We spoke to Áine Carroll, Director of Communications and Marketing Insights of the Competition and Consumer Protection Commission (CCPC) about how first-time buyers can cut through the noise in the mortgage market and make sure that they get the deal and mortgage that is in their financial interest in the long term.

Compare mortgage interest rates

The most important thing to consider when looking at getting a mortgage is the interest rate on the loan. The interest rate, along with the term, will determine how much your monthly repayments will be and the actual cost over the life of the mortgage.

Just because you do your day-to-day-banking with a certain bank, doesn’t mean you have to take out your mortgage with that bank.

It’s really important that you shop around and compare mortgages from as many different lenders as possible. Buying your first home is the biggest financial decision you will make and you need to make sure you’re getting the best deal. You can use the CCPC’s mortgage comparison tool to see all the competing rates in one place, including your potential monthly repayments and the cost of credit over the lifetime of the mortgage. All the rates, both variable and fixed, are shown so you can compare all of your options.

Don’t be blinded by special offers

Many lenders have attractive ‘cash back’ offers or will pay your legal fees if you take out a mortgage with them. The lure of cash back at such an expensive time is hard to resist – especially when you have a new home to furnish, a solicitor to pay and maybe management fees. But don’t let a cashback offer distract you – the most important thing to focus on is the interest rate as even a small difference in the rate could save you thousands of euro over the life of your mortgage. For example, if you are borrowing €270,000 over 30 years, the difference between the lowest and highest rate could save you over €50,000 over the life of your mortgage.

Get your finances in order first

When buying your first home you’ll need a minimum of 10% of the value of the house as a deposit. You may have assistance from someone in helping you get your deposit together, but the bank will want to see where the money has come from. The bank will need to ensure that you can afford the repayments and and a record of being able to save money regularly is important to show in that context. All your incomings and outgoings, including loans and other financial commitments, will be considered by the lender when you apply for a mortgage.

The CCPC has a mortgage comparison tool on their website here where you can get the most up-to-date information on the lenders and the mortgage products they offer. The tool is updated daily so with one easy step you will know exactly which lender is offering the best value for you in the long term.

The CCPC also has a buying a home step-by-step guide which covers everything from saving a deposit, hiring a solicitor to closing the mortgage deal.

Article Source: http://tinyurl.com/kbwqb42

Eurozone countries remain vulnerable to another crisis because they don’t have the fiscal space to absorb future shocks, the outgoing head of the Eurogroup has warned.

Jeroen Dijsselbloem, who heads up the group of finance ministers from the 19 euro area countries, said the bloc’s capacity to deal with future shocks is “very thin”.

“You could argue that we’ve used a large part of the monetary instruments, the tool box of the European Central Bank,” Mr Dijsselbloem told the Institute of International and European Affairs during a visit to Dublin.

“It’s uneven but, generally speaking, governments in the eurozone don’t have a lot of fiscal space to absorb any future shocks. And therefore we are still very vulnerable to an event that could come in the next years. So more work needs to be done.”
Mr Dijsselbloem said governments now need to use this period at a national level to help create more fiscal space to create that buffer.

“We need to make sure that on the public and private side, the capacity to deal with future adverse shocks is improved,” he said.
But he also said much work has been done at eurozone level to ensure the bloc can better weather another crisis.

“If you realise now what little we had when we went into the banking crisis, [it was] pretty disgraceful,” said Mr Dijsselbloem, who is also the outgoing Dutch Finance Minister.
“We told our deposit holders that they were insured. Very few member states had any preparation in place. Many member states had banking sectors in size and risk out of their span of control. So we’ve made a lot of progress already. Banking sectors are much better capitalised, better supervised. We are building up a resolution fund, we have the frameworks, so things are a lot more stable so we can manage shocks better already.”

Mr Dijsselbloem is leaving national politics in the Netherlands this week, and will take up a position as an adviser to the European Stability Mechanism (ESM). He will complete his term as chair of the Eurogroup, which expires in mid-January.
Mr Dijsselbloem’s Labour party was heavily defeated in the March election and will not be part of the new government, which was only agreed earlier this month.

He has served as Eurogroup chair since 2013.
The ESM has appointed Mr Dijsselbloem as strategic adviser. He will hold this position as an external service provider to the ESM until the end of his term as Eurogroup President.

Referring to the rise of the far right and populist parties in Europe, Mr Dijsselbloem said it is still “extremely worrying”.
“Some people have said that the outcome of the elections in the Netherlands and France has been quite moderate. I don’t agree with that. The extreme right has again grown in the number of seats in the Dutch parliament and done extremely well in the Presidential elections in France,” he said.

The Dutch politician also said that discussions on the next EU budget will be “hugely complex”.
“Are we going to downscale the budget to the size of the UK population or the UK contribution and how are we going to redistribute the costs?” he said.

He said there is also a debate around the Common Agricultural Policy (CAP).

Mr Dijsselbloem said he is not an EU federalist, but joint EU action on issues such as border control and defence should be looked at.

Article Source: http://tinyurl.com/kbwqb42