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Bailout Economic Performance

IMF: Structural Reforms in Ireland

The IMF has just released a new Staff Position Note Lifting Euro Area Growth: Priorities for Structural Reforms and Governance

[One of the co-authors is Ajai Chopra]

Its recommendations for Ireland are:

1. In relation to the labour market:

  • Introduce gradual decrease of benefits over time of unemployment spell and stricter job search requirements
  • Provide more resources to the unemployment agencies (FÁS) to provide efficient job search assistance to the growing number of unemployed
  • Review the level of minimum wage to make it consistent with the general fall in wages

2. In relation to improving competitiveness:

  • Reform planning and licensing systems in net work industries, so as to increase competition in sheltered services sectors
  • Focus public resources on high-priority projects in the knowledge-based economy