Stitch and Bear

A long-running Irish blog with reviews of the best restaurants in Dublin and throughout Ireland. Some wine and cocktails thrown in for good measure!

Tuesday, August 25, 2009

Ireland's Economic Woes Exaggerated, Believes Canadian Research Team

BCA Research, a Canadian-based investment research company who provide advice to international investors on investing in Europe, believe that coverage of Ireland's economic bother has been overly-pessimistic and that the economy may begin to rebound in 2011.

Good news eh? We have been digging ourselves into a bit of a bottomless trough. However, this piece of news does come with caveats attached. They comment that "policymakers must rein in government spending and get the banking system working again". Furthermore, while they welcome the creation of a "bad bank", they believe that the current crisis in the Irish banking system is much worse than the oft-compared early 1990s crisis in Sweden.

They warn the government not to rely on revenue but instead that "The biggest gains would be made by further cutting public-sector pay and employment."

This is not the first time that international agencies have stated the obvious about what is needed in Ireland. The McCarthy report also stated this. The whole public (bar the public sector trade unions) know that cuts in public sector pay and employment, along with social welfare cuts, are what is sorely needed.

But did our glorious leaders ever listen to common sense?

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