In less than a year, Ireland has gone from being a poor pupil to a model for other European countries. Just twelve months after benefiting from an international aid package from the ECB and IMF, it would appear that Ireland has now climbed out of the abyss it was in.
Better still, it parries with more than satisfactory results! Thus, its frightening 2010 GDP (which reached over 32%) will be reduced to around 10% this year, while growth has officially resumed, after more than 3 years of recession…
These impressive results were nevertheless achieved thanks to a drastic fiscal policy and austerity measures that hit the Irish population hard. The Irish banking sector, meanwhile, is in the midst of restructuring, and promises further progress in the months ahead.
Faced with such a turnaround, German Chancellor Angela Merkel described Ireland as a “superb example”, and a sign of hope for other European countries in difficulty.
However, this progress is far from being the last of its kind: despite this fine start, the Republic of Ireland is still fragile, and ankylosed by one of the highest levels of debt in Europe. In addition, unemployment, estimated at over 14%, coupled with the property crisis, are a huge handicap to Ireland’s economic recovery…
However, Fine Gael, the government’s majority party, intends to keep up the momentum and make further progress in the months ahead.
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