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Post-programme surveillance mission to Ireland: strong economic momentum to continue but risks tilted to downside

Staff from the Commission, in liaison with staff from the European Central Bank, visited Dublin from 28 November to 1 December to conduct the eighth post-programme surveillance (PPS) review for Ireland.

date:  07/12/2017

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Staff from the Commission, in liaison with staff from the European Central Bank, visited Dublin from 28 November to 1 December to conduct the eighth post-programme surveillance (PPS) review for Ireland. The mission concluded that the strong momentum in the Irish economy is likely to continue in the short term, but risks remain tilted to the downside, primarily those related to the outcome of Brexit negotiations as well as potential changes to the international taxation environment. Public finances have further improved on the back of robust output growth, yet risks of volatility in some forms of tax revenue, such as corporate income tax, remain. In the financial sector, banks continue to improve their resilience and there has been a notable reduction in non-performing loans. However, efforts to deal with legacy issues should be sustained. Moreover, while rising property prices are supporting the repair of banks' and households' balance sheets, the sustainability of such developments warrants continued attention.