News

Challenging Economic Conditions ahead for Ireland

Published On:  Mon, Jun 25th, 2007
Contributed By:  Finfacts Team

In a statement today the Taoiseach, Bertie Ahern, T.D., said that the Government, at its meeting yesterday, reviewed the outlook for the economy.It is clear that we are entering a period of more challenging economic conditions," Ahern said. "It is important, therefore, that we focus our efforts in the development of policy and programmes, and in social partnership, to restore and renew our competitiveness across all dimensions. While the combination of pay increases and Budget tax cuts is protecting employees' living standards it is essential that we curb inflationary pressures. The Government has been working with IBEC and ICTU on this issue under the relevant provisions of Towards 2016, and in particular we have been reviewing emerging trends over recent weeks."

The Taoiseach said that together with the Minister for Finance, he will be seeking an early meeting with IBEC and ICTU, after the formation of the new Government, to discuss "we can together tackle inflationary pressures in line with our shared commitments."Reacting to today's CSO inflation figure, which showed a marginal reduction to 5.0%, IBEC Director General Turlough O’Sullivan said: "The recent spike in inflation has been damaging for both consumers and business, but it is now critical that we do not do anything that will add further to inflationary pressures in the economy.

"Government must keep firm control on the prices charged by the public sector for the services it delivers, while unions and employers must adhere strictly to the pay terms of Towards 2016."

O’Sullivan welcomed the fact that inflation declined in the month of May and is likely to fall further in the second half of the year.

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