Irish unemployment too high, says Rehn

Europe’s top economic official has warned that unemployment in Ireland remains too high.

But Olli Rehn, the EU economic and monetary affairs commissioner, said there were also signs the Irish economy was picking up and the country is on track to successfully exit its bailout package.

Speaking at the Euro- group press conference in Luxembourg, he said huge rescue deals had helped turn around both Ireland and Spain.

“We are now two months from the end of the Irish programme and three months from the end of the Spanish financial sector programme,” he said.

“Both programmes areon track for a successful conclusion. The conditional financial support has helped to deliver an economic turnaround in the two countries concerned.”

Mr Rehn said Ireland’s economy had grown every year since the beginning of the €64bn bailout package more than three years ago.

“Exports have remained resilient and there are signs that domestic demand is picking up.”

However, he warned that although unemployment was beginning to fall, it remains “much too high”.

Mr Rehn said he did not want to prejudge an upcoming report from the Central Bank, but he believes that Ireland has a “very good chance of successfully concluding” its rescue package “in a sustainable manner