An expanded EU will open up new markets of more than 100 million people to Irish businesses, the Minister for Foreign Affairs, Mr Cowen, said last night, writes Barry O'Halloran

Addressing the Small Firms' Association (SFA) annual Christmas evening, Mr Cowen, called on Irish small businesses to cash in on the opportunities presented by EU membership.

"I would not wish to underestimate the obstacles, but many small firms have shown an ability to overcome the obstacles and take advantage of the opportunities presented by EU membership," he said.

"There will be some obstacles as well as real opportunities when the EU is enlarged again next May with the accession of ten new member states.

"The accession countries will give Irish exporters access to an additional 110 million in an enlarged single market of 480 million. They are developing markets and they will provide growing markets for Irish goods and services."

Mr Cowen said that during Ireland's presidency of the EU next year, it would prioritise removing the barriers to business expansion in Europe.

"Viewing the services sector as an important motor for growth and employment creation, we intend to focus on pressing forward with the Directive on the Internal Market for Services," he said. "This will enable the services sector to operate more easily across national borders throughout Europe."

The Minister said the Irish Government also intended finalising the reform of EU regulation 1408, which will facilitate greater worker mobility by making it easier for employees to get their various entitlements in all the union's member states.

He also said that he welcomed the recent report of the EU's employment taskforce, headed by former Dutch prime minister, Mr Wim Kok.

"The taskforce confirmed that Europe needs to achieve better flexibility and adaptability in its workforce, greater investment in research and development and better training opportunities for its workers if it is to improve its employment situation," he said.

"It is also important to ensure that effective structures are in place at EU level to support competitiveness," he told the gathering.

"To this end, we have sought to develop an integrated strategy for business using the resources now available to us through the Competitiveness Council. In keeping with its role as guardian of competitiveness, it will be important for the council to assess the impact of new EU decisions."