Ireland will continue to hit EU deficit targets

Ireland will continue its impeccable record of hitting its EU deficit targets this year and next - provided tax receipts make up for the cost of Irish Water if it has to be counted in the national budget.

The other unknowable as far as the European Commission’s economic forecast was concerned is the contribution to Ireland’s growth of contract manufacturing, much of it composed of US companies becoming Irish.

For the first time since the start of the crisis all EU countries will grow this year but while the signs are good, nothing can be taken for granted as risks remain and uncertainty has increased, Economics Commissioner Pierre Moscovici warned, as prospects vary greatly between countries.