Ireland risks a lost decade, warns expert

Ireland risks a lost decade if it fails to shift its credit supply to new viable enterprises, the Central Bank’s chief economist Lars Frisell has warned.

Irish banks face economic uncertainty and pressure to deleverage but this threatens to stifle their ability or willingness to supply credit at reasonable cost, he told a conference in Luxembourg.

He was making a case for a banking union that includes the single supervisory mechanism, now under way, and the further components of a common deposit protection and a single bank resolution mechanism.