Services to create 120,000 jobs

IRELAND’s exports of services are set to rise by between €10 billion and €14bn per annum across the 27 EU nations, thanks to the EU’s Services Directive, according to a leading Irish industry body.

The Irish Exporters Association (IEA) estimated at its annual President’s Lunch in Dublin that the services sector could create 120,000 net new jobs in the decade to 2020.

This performance will be considerably helped by the new directive, in operation since January, which will in time greatly ease trade between EU states.

IEA president Liam Shanahan said services account for around 70% of all EU economic output, while at the same time only accounting for 24% of intra-EU trade.

“This difference in percentages has been brought about by vested interests supporting the local status quo in individual countries,” said Mr Shanahan. “The new Services Directive has eased the way for more intra-EU trade in services and additional opportunities for Irish services companies.

“The objective of the directive is to release the untapped cross-border trade in services across Europe by removing legal and administrative barriers that had been in place.”

He added that Irish services exports to the EU currently stand at €45bn, with exports to Britain accounting for 43% of this total.

“It has been estimated that the value of Irish services exports could rise by €10bn to €14bn per annum across the EU 27 now that the Services Directive has come into force,” he said, adding that the IEA believes the services sector will dominate job creation with 120,000 net new jobs in the decade to 2020.