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Troika wants us to keep up austerity

THE strict implementation of Budget 2013 measures is necessary to keep economic recovery on track, says the Troika.

Troika mission teams have already discussed with authorities preparation for leaving the programme,

Representatives from the EC, ECB and IMF have completed their tenth review of the country's economic position.

They estimated growth of about 1pc this year and just over 2pc in 2014.

Troika mission teams said that weaker than anticipated economic activity in our main trading partners is weighing on exports, but noted that domestic demand is stronger than expected.

"The authorities have made significant progress on financial sector repair and restoring sustainability to the public finances, yet remaining challenges require continuing policy efforts," the Troika said.

"Strict implementation of Budget 2013 measures, including in the health sector, is essential to meet the Government's commitment to a 2013 deficit ceiling of 7.5pc of GDP."

The Troika said that a pick-up in growth is needed to reduce unemployment, but emphasised that further policy efforts are important.

"The significant progress Ireland has made in recovering lost competitiveness should be continued through opening up competition in sheltered sectors such as legal services," it added.

The next review mission is scheduled for July.