Thursday 26 April 2018

Commission warns Ireland on property market, debt levels

Commission President Jean Claude-Juncker
Commission President Jean Claude-Juncker
Gavin McLoughlin

Gavin McLoughlin

The European Commission has raised concerns about Ireland's debt - both public and private - and the housing market.

Ireland was identified as having "macro-economic" imbalances and will face an "in-depth study" conducted alongside the post bailout supervision programmes carried out by the troika .

Problems flagged were supply constraint in housing, and an elevated ratio of private sector debt to GDP, partly caused by company debt on the balance sheet of Irish affiliates of multinationals.

The Commission also warned about a sharp rise in house prices, but noted that the rise came after a steep crash. It said recent pressures "largely reflect supply constraints especially in large urban areas."

"Pressures are also mounting on the rental market."

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