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Dublin: 10 °C Saturday 25 May, 2013

Central Bank publishes letter on Fiscal Compact – Ireland on track for 2020

The letter states that, despite ‘many uncertainties’, the date of 2020 remains achievable.

Ireland voted on the Fiscal Treaty on 31 May.
Ireland voted on the Fiscal Treaty on 31 May.
Image: Mark Stedman/Photocall Ireland

THE CENTRAL BANK has today published an economic letter, entitled ‘Fiscal Compact – Implications for Ireland’, which outlines the long-term implications for Ireland as a result of the fiscal compact.

The letter states: “Although the projections set out in the Letter demonstrate that fiscal targets remain on track to 2015, many uncertainties prevail.”

Findings confirm that uncertainty around these fiscal projections is high.

Despite this, the Central Bank believes that the government’s commitment to the EU-IMF targets for 2015 should be adhered to.

These ‘future fiscal paths’, however,  ’depend jointly on policy decisions taken to date and potential exogenous [external] shocks to the economy.’

Making reference to the ‘structural balance of -0.5 per cent of GDP (the Balance Budget Rule) as required under the Fiscal Compact’, the Central Bank believes that this can be ‘achieved by 2020’.

This belief, however, comes with the following caveat:

This paper does not comment on how much of this necessary correction originates from the benefits of past structural reforms undertaken, relative to how much would need to come in the form of additional consolidation efforts.

Read: Do you know what the fiscal compact treaty is all about? >

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Comments (17 Comments)

  • I’m not sure what this article was about.

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  • Basically means cut, chop, slice for the next 8 budgets….

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  • QE3 Lets get positive wohoo .The headline in itself is a negative comment so what’s left to say.

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  • Cue loads of negative comments from people who don’t even know what the letter means

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    • Trouble is that for every report like that there are reports like this.
      .
      http://finance.fortune.cnn.com/2012/09/25/euro-break-up/
      .
      And the only problem there is that this guy has been more on target than the central bank. If you read his report fully and apply it to Ireland he’s spot on with what is actually happening here and now.

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    • So RoSSY Boy

      Enlighten us

      What does it mean?

      Seeing as your comment would imply that you understand it so much better than the rest of us.

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    • well I admit here i think its all double dutch and gibberish and so do most of the irish people and this confusion helps to keep people in the dark and allows this government to stay in power. But you are right. The arm chair experts here now will try to make us feel like idiots for not understanding such “basic” stuff as this. Everyone is an expert these days and at the same time we all go blindly on toward oblivion. It takes courage to admit when you do not understand something but to others they use it as one-up-man-ship. Its the one thing I hate about these comments. Honesty is rare.

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    • I haven’t given my opinion on it because I haven’t read the letter and I’m not informed enough to comment on it. Mr Gardiner has done exactly what I thought people would do though.

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    • censored 25/09/12 #

      I doubt people are too worried about being labelled “negative” by somebody who can’t even be bothered trying to understand the situation. Arrogance = ego + ignorance.

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    • I’m sorry how has my ego come into this?? I haven’t had time to read the letter. I’m also not ignorant because I’m aware of the fact that I’m not informed on the issue. Good man yourself

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  • I think we can safely say that this is more bollocks designed to stump any serious policy changes within Europe. What a pity. Ireland is in a perfect position to shake off the medieval political past and completely transform itself into a 21st Century society, and yet conservatism and elitism still remain rampant.

    I’m going to mention the dole! I live in West Cork which I suppose has a pretty high unemployment rate. Everyone I know on the dole would rather be working, with a very few exceptions who wouldn’t be great on the job anyway. These people are bright and imaginative and resourceful and are constantly trying to think up new business ideas to get themselves moving. Unfortunately the current stagnant climate isn’t helping. The question for me isn’t how much is x paid, or how much does y get in allowances, but how much does it take for each individual/family to live in modern Ireland and is that money available? If it is not then how can we reduce living expenses- food and energy esp- whilst increasing community involvement and encouraging everyone to have a go at what they each do best. We need to start thinking about the production of food and energy to avoid the trap of fluctuating and constantly increasing costs of imports.
    : )

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  • Well whatever it said Im sure Im against it!!

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  • 2020=8 more years of cuts wherever possible except for in governments and banks ha what a joke it’s the Irish citizens and families and children that will end up on the streets of Ireland due to the retardedness of our government in throwing billions and billions of OUR money into failing banks.

    http://www.change.org/petitions/supporting-the-irish-nation-step-down-from-government

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  • This governments fiscal policy is to tow the line and see what happens and i suppose because we are a spot on the arse of europe they have no choice. The most disappointing thing is that rather than solve the internal inequities in the country they continue the usual lets look after the boys routine. Fine gael are exactly the same as fianna fail. What disgusts me is the leadership of the labour party who have moved further right than their government partners. Brendan howlin summed it up during the week. when he had a chance to make a small adjustment for the good, but he copped out. Some of those allowences were laughable and before any p.s. person comes on to lash me, I understand that frontline staff in the p.s are totally undervalued.
    rant over!

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    • Damien there is no difference between FF, FG & Lab they are all part of the same establishment sharing the same values. Basically to be allowed to gain access to the gravy train and end up with pensions that most of us will not see unless we are working in the top ranks of the CS or banks. More fool us the voters. Not bothered to mention SF as I don’t believe they are the solution either. Just in case someone wanted to claim I’m a SF supporter.

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