Economy: An overview
Tuesday, February 7th, 2012Exports, agriculture and inward investment are Ireland’s main economic successes but unemployment, emigration and low consumer demand are holding back growth. 2012 commenced on a positive note for Ireland, with news that the State is due to cut its deficit to 10.0 per cent, bettering the troika’s 10.6 per cent target. A 1.8 per cent fall in GDP since 2010, though, suggests that the overall economic situation is still fragile. Preliminary CSO statistics show a 9 per cent increase in exports of goods (unadjusted) between November 2010 and November 2011. During January-October...[full story]
Economy: The euro crisis
Tuesday, February 7th, 2012The future of the euro, and Ireland’s place in it, remains uncertain. Stephen Dineen looks at the country’s currency options. Depending on the outcome of the euro crisis, Ireland has four main currency options. It could stay in the economic and monetary union, quit the euro and establish an independent currency, or quit the euro and establish a currency linked to sterling or several currencies. Staying in the euro is seen by many economists as beneficial because it provides Ireland with currency stability, lower business costs and cheaper borrowing (through lower interest rates)....[full story]
Economy: Triple A shocks
Tuesday, February 7th, 2012The causes of the Great Recession risk being repeated, Patrick Love contends, as he reviews the downturn. Globalisation multiplies the effect of new shocks in a way never seen previously. Financial crises and recessions are nothing unusual. There were 195 stock market crashes and 84 depressions between 1860 and 2006. However, the 2007 crisis marks a turning point in that for the first time the entire world was affected. The trigger was the collapse of Lehmans, which called into question one of the unspoken assumptions of global finance: some banks are too big to fail. This assumption...[full story]
Economy: Looking ahead to 2012
Tuesday, February 7th, 2012Figures from the arts, politics, business and the media share their thoughts on the way ahead in 2012. Brendan Keenan Economics editor, Irish Independent It looks as if 2012 will be another year of stagnation for the Irish economy. The endless euro zone crisis has dashed hopes that the year might have seen the start of recovery from the deep, four-year recession. Most analysts expect the volume of goods and services produced this year to increase by only half a per cent or so. When the large profits earned by foreign companies are deducted, national income may fall again,...[full story]
Health: Ireland’s average health system
Tuesday, February 7th, 2012“The Irish lifestyle may be fun but there’s no way you can describe it as healthy,” according to the head of the OECD’s health division Mark Pearson. Meadhbh Monahan reports. Ireland has had “stunning” increases in life expectancy (with the age of the total population at birth increasing from 76.6 to 80 years since 2000) but is “doing badly” at preventing and treating chronic conditions, which are largely self-inflicted through lifestyle choices. Mark Pearson brought this message to the ESRI Budget Perspectives event. While Ireland’s health spend per capita rose quicker...[full story]
Economy: EU-IMF Update
Tuesday, February 7th, 2012The Government met its Q4 2011 targets and banking restructuring continues. eolas looks at the latest developments. The ECB-EC-IMF troika was in Dublin from 10-19 January for its fifth review of the bailout programme’s implementation. It concluded that the programme is “on track” but with no room for complacency. The 2011 general government deficit target of 10.6 per cent was not only met, but surpassed at 10.0 per cent. The two pillar banks (AIB and Bank of Ireland) met their 2011 deleveraging targets, selling €15 billion worth of assets at “at a better price than anticipated,”...[full story]
Finance: Consumer laws reformed
Tuesday, February 7th, 2012The Central Bank has strengthened protections for financial institution customers, and consumer law reform is planned by the Government. eolas outlines some of the changes. Protection for customers of banks, insurance and investment companies, and intermediaries was strengthened in January through a revised consumer protection code. It is the first major revision of the code since it first came into effect in January 2006. The Central Bank has also increased staffing in consumer protection. The code includes several significant changes, such as: stricter affordability testing regarding...[full story]
Transport: Transport’s slow future
Tuesday, February 7th, 2012Maintaining existing roads and railways and extending the Luas are the main priorities for transport’s reduced capital budget. The Government’s decision to prioritise health, education and restoring the economy means that €4.36 billion will be spent on transport until 2016. The ‘Infrastructure and capital investment 2012-2016 medium-term exchequer framework’ outlines the transport projects and initiatives that are to be funded until 2016, including four major road public-private partnerships (PPPs), two on which work has already begun. This contrasts with the boom-time National...[full story]
Transport: The future of Ireland’s airports
Tuesday, February 7th, 2012eolas examines the options for reforming the structure and funding of state and regional airports. Neither Cork nor Shannon airports should be privatised, according to a leaked report currently being examined by Transport Minister Leo Varadkar. While the McCarthy report into state assets recommended that Dublin, Cork and Shannon (all operated by the Dublin Airport Authority) be privatised, the leaked report, by Booz consultants, recommends that Shannon be separated from the DAA. The west of Ireland airport should be given a new ownership structure (e.g. a public holding company of local...[full story]
