Irish firms told to prepare for European ‘lost decade’

Irish companies need to prepare for a European lost decade on the back of sluggish growth and rising unemployment, according to Marie Diron, senior economic adviser to the Ernst & Young Eurozone Forecast.

“This will be a tough operating environment for both business and political leaders. Businesses need to plan for a European ‘lost decade’ as growth will remain muted and unemployment will continue to rise throughout 2013, peaking at close to 20m,” Ms Diron said.

“The peak in unemployment is expected to be both higher and slower to unwind in the peripheral economies with the unemployment rate expected to reach over 28% in Greece, 26% in Spain, and almost 17% in Portugal and 15.3% in Ireland.”