Time to face up to Ireland’s new challenges

BACK in 1986, Ireland’s economy and society were in deep crisis. Incorrect decisions made then would have resulted in more decades of economic and social stagnation.

Thankfully, the correct decisions were made and the rest is history. Ireland today is arguably at a juncture every bit as critical as that reached back in 1986, and incorrect policy decisions at this stage could be disastrous for the next generation.

After two of decades of rapid economic growth and dramatic social development, the nature of the Irish economy is now changing, and this poses very serious long-term challenges. The issues can be divided into short and long-term ones. In the short-term, it is clear that the construction boom is over, as evidenced by the sharp slowdown in house building and the 10.3% decline in people working in construction in January.