The ESRI today published its medium term review of the Irish economy – the first in five years.
It is recommending the Government press ahead with a full Budget adjustment of €3.1 billion.
However, Tax Partner with BDO Limerick Pat Sheehan says the report misses an opportunity to recommend a kick-start to the Irish economy.
“While agreeing for the most part with the economic analysis put forward in the review published today by the ESRI I believe that by recommending that the Government proceed with the full €3.1billion budget adjustment the report fails to identify an opportunity that may n
ow exist to start the process of giving the Irish economy a much needed kick-start.
“Bank industry reform is essential to getting the economy ready for growth and a failure in Government policy in this area would continue to place a stranglehold on businesses that need credit for business survival and/or expansion. Government and bank policy needs to support business and ultimately getting people back to work.
“More targeted employment initiatives which support the business sector and its potential for growth is an area that needs focus and funding now so that the Irish economy can take a proactive step towards indigenous economic growth which can benefit from growth in the European economy. Stimulating the local economy must be a critical aspect of any economic recovery plan.”
Watch an interview with ESRI Research Professor John Fitzgerald here on RTÉ News.