The Government should implement tougher fiscal policy to safeguard Ireland's recent economic success, leading economist Mr John FitzGerald of the ESRI said today.
Addressing the Annual National Conference of the Institute of Certified Public Accountants today, Mr FitzGerald said; " The new-found wealth also provides opportunities to develop our economy and society in ways that were beyond us in the past".
According to Mr FitzGerald, the first step to continued prosperity is the successful implementation of the National Development Plan (NDP).
"The Irish economy is like a child that has outgrown its clothes... the NDP provides for many urgent programmes to begin remedying this constraint on growth." he said.
The second task is to try and prevent the economy overheating. "At present the radiator is steaming and some slow-down is necessary." he added.
A tougher fiscal policy stance would reduce the risk of a breakdown, he said.
Looking to the future, Mr FitzGerald said that the changes in the economy provide a major opportunity to change Ireland.
"For all Irish citizens there are also real choices to be made concerning the quality of life we want for ourselves and our children." he said.
"Today Ireland is not a very family friendly society." he said.
Mr FitzGerald concluded by pointing to the three lessons which could be learned from the Irish experience.
These are: "globalisation can be very good for you; foreign direct investment is an opportunity; and finally, the role of investment in education in economic success can not be over emphasised," he said.