Monday 20 January 2020

Timing of EU move could be better for the Irish economy

John Downing

John Downing

THE EU's one-size-fits-all policies have not always been kind to Ireland.

The cheap Eurozone money played its part in the era of the Celtic Tiger when too many people lost the plot. For several years Ireland has been among those calling for a special European growth stimulus.

Few of us will remember that it was a central theme of Ireland's last EU presidency which ran from January to June in 2013.

Until recently these calls cut little ice where it mattered: in Berlin and the European Central Bank in Frankfurt.

But yesterday that appeared to change as something looking suspiciously like choreography emerged in Paris. French President Francois Hollande urged Eurozone action on growth and German Finance Minister Wolfgang Schaeuble, who just happened to be in Paris, backed this call.

The German change is driven by a slow down in their economic growth in the second quarter of this year and French moves to control public spending.

But what does it means for an emerging Irish economic recovery? The Government reaction was muted and careful.

However, IBEC, while positive, sounded a cautionary note. From IBEC's point of view is that the Irish recovery risks being overloaded.

Could we be headed back to the future?

Irish Independent

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