Ireland can get out of this, says leading international expert
Published 13/09/2011 | 09:36
DESPITE the current troubles in the eurozone there still remains hope for the Irish economy, according to a leading expert.
"With Ireland there's some hope but it all depends on growth," said former ECB economist Tobias Blattner. "The markets are showing increasing confidence in Ireland because they're achieving the targets set out in their austerity programme."
But Blattner said that this depends on economic growth continuing to increase which in turn depends on increasing exports.
"Ireland is very export dependent," said Mr. Blattner who is currently an economist at Daiwa Capital Markets speaking on NewsTalk this morning. "So, if a global recession does occur it might slow Irish growth which might reduce tax revenues and make it more difficult for Ireland to meet its targets."
Mr. Blattner's comments come amidst much talk that Ireland has 'decoupled' from other countries such as Greece in the bond markets and is coming to be seen as viable where the others are not.
Last week Irish ten-year government bonds fell to under 9%, rates that haven't been seen since January of this year. Meanwhile Greek ten-year bonds surged to a new record high of over 20%.
Mr. Blattner was gloomy about prospects for Greece in the near future.
"It's only a matter of time before Greece have to restructure," he said. "There needs to be haircuts of around 50pc but EU leaders have yet to gather the courage necessary to admit this."
Mr. Blattner says that the targets set by the Greek government were 'unrealistic' from the start.