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Fiscal Policy and Reform
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Govt agrees to budgetary adjustment plan of €15bn
over next 4 years with €6bn of this frontloaded to
2011
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Tax increases in Excise, Site valuations, Capital gains,
Carbon, Personal income tax, lowering of tax reliefs
–
Public service employee numbers reduced, pensions
reduced, programme of sale of state assets
introduced
The recovery
•
Irish economy recovering steadily with some uncertainty around certain
issues
•
GDP growth in 2014 was 4.8%
•
Exports have recovered well, helped by
–
Euro weakness vs Dollar and Sterling
•
Domestic demand continues to improve
•
Govt deficit remains below ceiling set by EU under the Excessive Deficit
Procedure (unlike France!!)
•
Unemployment, having peaked at 15% in 2011 is now below 10%
•
Restructuring of domestic banks progressing slowly but surely
•
Main Irish banks passed the recent severe stress tests
–
Govt expects to sell 25% of AIB this year
IGTA eJournal | Summer 2015 | 33