OECD: Recovery from 'severe recession' will take some time

A major new report on Ireland's economy from the Organisation for Economic Cooperation and Development (OECD) has said major cuts in wages are still needed in order to stabilise the public finances.

In its Economic Survey of Ireland published today, the OECD said Ireland was in "severe recession" and indicated said that the adjustments required for recovery would take a long time, resulting in a permanent lowering of living standards.