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Economic growth Fiscal Policy

The Four-Year National Recovery Plan

You can read my view on the Four Year Plan here.

My comment included two additional paragraphs which were cut, I suppose due to space constraints:

“The current economic and financial crisis has slowed down economic growth in the advanced economies which are Ireland’s main trading partners. Against this background, the assumption of a strong export-led growth might be too optimistic. In addition, improving price competitiveness and reducing the debt burden are two conflicting objectives.   

Operational measures are to be discussed at a later stage and there is little information about the measures to be taken beyond 2011. It is not clear when and how the plan will be reviewed, enforced, and monitored. There is no clear sequencing of the reforms to ensure that short term negative effects on demand are minimised.”