Don't eat green shoots of recovery
Raising our Vat rate on the hospitality and tourism sectors would be disastrous, writes Brendan O'Connor
DESPITE Mario Draghi's warning last Thursday that the shoots are very, very green, we in Ireland have certainly adopted what you might call a recovery narrative. This is partly because we have all had enough of the crisis narrative, partly because we had a sunny summer, and partly because there appear to be some green shoots.
Take property. Of course, people will argue that property price rises are not desirable, and others will argue that what we are seeing now is not a stabilisation in the property market but a mini bubble due to a temporary supply issue in certain areas. Either way, some people are feeling a bit richer, or less poor, due to that warm feeling that their only asset is not sinking in value every month.
Meteorological and psychological warm glows aside, we saw more goodish news on the jobs front last week. Employment is not only a tangible sign of recovery, it's contagious too, in that jobs beget more jobs in local economies. We have now seen four quarters of successive jobs growth, which one could cautiously call a trend. The fact that this follows four successive years of catastrophic job losses means we are still screwed, but perhaps we are starting to go in the right direction.