Minister appeals for wage restraint

IRELAND is more exposed than most other eurozone countries to the ill-effects of a down turn in the US economy, but a recessionis in no way inevitable, according to Finance Minister Brian Cowen.

The country, and the eurozone generally, was never in as good an economic condition to withstand the cold draft from the plunging world stock markets and the pessimism over the US economy, he said.

But there would be repercussions and it was essential in this climate to exercise wage restraint, in a reference to next month’s social partnership negotiations, and increase productivity Mr Cowen said.