The former governor of the Central Bank has given a lukewarm welcome to our membership of the single currency. Speaking at the annual general meeting of the Economic and Social Research Institute (ESRI), Mr Maurice Doyle gave a wholehearted endorsement to the Good Friday Peace Agreement but merely said that "many welcome" our membership of the single currency.

It is welcomed because membership puts Ireland at the forefront of European integration and development, he said. But he added that concerns include the loss of exchange rate discretion and problems arising from our strong trading relationship with the UK.

In contrast, he said the Good Friday Agreement is "momentous" in its potential for the creation of a natural economic zone encompassing the whole island.

"The benefits which could accrue from the realisation of that potential in terms of inward investment, development of indigenous industry and improved physical and social structures are considerable," he added.

Mr Doyle, the president of the ESRI, also noted that 1998 may well be a "watershed" in the development of the Irish economy. He noted that the economy is buoyant at a time when Europe is picking up.

However, he also warned that inflation is growing and must be kept in check and that special pleading on the wage front could undermine social partnership which has been a major factor underpinning the progress of the economy.

Mr Doyle also warned that provision must be made to improve the physical and social infrastructure so as to consolidate recent growth.