Unions and business leaders met European commissioner for economic and monetary affairs Olli Rehn in Dublin today to press their cases for addressing Ireland's budget deficit.
Mr Rehn held separate meetings with representatives of Ibec and Ictu today after holding briefings with delegations from Fine Gael, Labour and Sinn Féin at the European Commission office in Dublin.
Speaking after the meeting, Ibec director general Danny McCoy said he told Mr Rehn that Irish businesses were confident they could "grow themselves out" of the financial crisis.
“We’re seeing growth in the exporting sectors. Ireland is having its strongest year yet for exports. Our balance of payments is quickly coming back into surplus. What we need to do now is get domestic customers confident again and spending again,” he said.
“Consumers need to know how much taxation they’re facing because it is our view that in the absence of that certainty people are saving themselves out of their own jobs at the moment. It is behoven on all of us to ensure we have sustainable businesses and get more people back to work."
Mr McCoy said the Government's forthcoming four-year plan needed to avoid choking off the recovery emerging in Irish business.
Ictu general secretary David Begg said he warned Mr Rehn that the approach being taken by the Government would damage the economy and growth would be impossible if the country was sent into a deflationary spiral.
“We explained to him that our analysis was to do this over a longer period and also to promote investment at the same time so that growth could do some of the heavy lifting,” he said.
Mr Begg said Mr Rehn displayed “considerably less arrogance” than others who advanced austerity measures as the only solution.
“Mr Rehn supports the Government but what surprised me a little bit was he is prepared to admit that this isn’t an exact science and he displayed considerably less arrogance than other people who advance that as the only solution."
Spitu president Jack O’Connor said there was a limit to how much pain an economy could take, calling what was being proposed by the Government “unadulterated madness”.