Business chiefs put faith in future of euro

IRISH business chiefs are showing more optimism than their British counterparts, with many believing Ireland will still be in the euro in 10 years.

Almost half of business leaders surveyed by Barclays Bank Ireland believe the eurozone will not have changed by the end of this decade.

Four out of five believe Ireland will still be part of the euro in 10 years.

The majority of businesses in Ireland believe the economy will have less reliance on the public sector over the next decade

However, they are yet to be convinced of the ability of politicians to reduce tax, red tape and the deficit.

The chief executive of Barclays Bank Ireland, Andrew Hastings, said: “This research we have published is interesting as it demonstrates a slightly more upbeat sentiment amongst Irish businesses when compared to our counterparts in the UK.

“Overall, Irish businesses remain upbeat about the country’s longer-term prospects, which is encouraging.

“Growth over the next 10 years is expected to be fuelled by exports, the country’s continued participation in the eurozone and through the private sector,” Mr Hastings added.

In the area of taxation, Irish business leaders are expecting an increase in the tax burden and two-thirds believe the tax burden will be higher in the next 10 years.

Businesses are divided when deciding whether or not the Government will achieve a budget surplus in the next 10 years.

However, those who think a surplus will be achieved (45%) are generally more positive when thinking about the future of Irish businesses.

Businesses are also almost evenly divided when considering the amount of red tape they will be facing in 10 years, with 48% believing there will be less compared to 45% who think there will be more.

This compares somewhat favourably to firms in Britain, where 64% believe red tape will grow in the period.

Meanwhile a survey conducted by recruitment firm Manpower found that overall, employers in Ireland expect the labour market to remain muted in the three months to the end of December.

For the fourth consecutive quarter, employers in the pharmaceuticals sector report the most optimistic hiring plans.

However, employers in four of the 11 industry sectors surveyed reported positive hiring intentions.

Manufacturing employers reported the strongest hiring prospects since the third quarter of 2008 and predicted more jobs in the construction, public and social sectors over the coming months.