ELEMENTS OF Irish society are reaching “convergence” on how to face the economic crisis, with a focus on “working the EU-IMF bailout”, according to the National Economic and Social Council.
The social partnership-era think tank published its analysis yesterday in a report entitled Ireland’s Economic Recovery: An Analysis and Exploration. The report acknowledges the scale of challenges facing Ireland, but stressed there are precedents for recovery.
“International research shows that while there are long-term negative impacts – in particular on the level of output, employment and house prices – growth does recover,” the council said. In support of this view, the report cites evidence to show the economic downturn is bottoming out.
It cites strong export growth, a return to surplus in the balance of payments, improving competitiveness indicators and growth in household net wealth, among others.
The council secretariat emphasised, however, it believed there was very limited space for policy manoeuvre owing to the constraints of the EU-IMF bailout. Morever, it stressed the space is becoming more constrained by developments in Europe related to the sovereign debt crisis.
The report discusses five connected elements the council believes necessary to “work the EU-IMF deal”. These include: the need to continue fiscal adjustment and reform; the need for “relentless work” to revive sustainable economic growth; the need to make social solidarity a core concern; the need to address constraints on recovery, such as limited access to credit; and the need for a more comprehensive EU and international resolution to the ongoing financial/euro crisis.
The report was written by four staff members of the council, Noel Cahill, Larry O’Connell, Rory O’Donnell and Cathal O’Regan.