European Commission Directorate-General for Economic and Financial Affairs
This paper reports on the joint EC-ECB-IMF review of policy conditionality under EU/IMF financial assistance programme to Ireland up to end-March 2011. It also incorporates in an annex the updated programme documents, endorsed by the ECOFIN on 17 May 2011 and the IMF Executive Board on 16 May 2011.
The economy is rebalancing away from domestic demand and towards net exports, as expected. Barring a minor downward revision in the growth forecast for 2011, the macroeconomic framework of the programme remains appropriate. Programme implementation has been strong: fiscal targets have been met or are on track to be met, a comprehensive strategy to recapitalize, restructure, and deleverage domestic banks has been developed based on thorough stress-tests, and steps have been taken towards the programme's structural reform objectives. Importantly, the new government has taken full ownership of the programme.
Going forward, continued strict programme implementation remains essential to buttress credibility in the policy framework and in the achievability of the programme consolidation objectives.
|ISBN 978-92-79-19330-9 (online)|
|ISSN to be announced|
Occasional Papers are written by the staff of the Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The Papers are intended to increase awareness of the technical work being done by staff and cover a wide spectrum of subjects. Views expressed in unofficial documents do not necessarily reflect the official views of the European Commission.