‘Recovery due to fiscal discipline’

The turnaround in the economy can be attributed to tight fiscal discipline over the past three years, although the financial crisis will leave an unfavourable legacy, according to Central Bank governor Patrick Honohan.

“The accumulation of debt, public and private, will continue to weigh on growth prospects in a variety of ways. And many households are being affected by long-term unemployment.

“But the damage can be ameliorated by a variety of means, including work on labour market activation and continued improvement of fiscal policy and measures,” Mr Honohan told a conference in Dublin organised by Trinity College and the European Commission.