Ireland ‘must work relentlessly’ to recover

THE National Economic and Social Council (NESC) has called for the establishment of a Strategic Investment Bank, saying it would be “a key step” towards providing finance for business investment.

The latest report from the body — which advises the Taoiseach on economic policy — said that while there are signs of economic recovery, Ireland needs to continue to improve its underlying debt dynamics in order to sustain and “deepen” its recovery. It said Ireland needs to “work relentlessly” to revive sustainable growth and must focus on export growth, along with rebuilding the tax base.

“Taxes shouldn’t constrain economic growth and activity. More revenue should be generated through taxes — such as well-designed property tax and water charges,” the organisation said.

It pointed to the need to address certain “developmental constraints, which have the potential to undermine the long-term recovery of the economy and society”.

“One such constraint is the availability of finance to support business investment. Taking forward the idea of a strategic investment bank — as mentioned in the Programme for Government — is a key step in this regard. It could support projects that deepen and strengthen Ireland’s economic and social development in a sustainable way.”

The report called for a more comprehensive EU and international financial resolution, and suggested that the Government needs to be an active contributor “to the ongoing analysis of policy developments in the EU and the euro area”.