Irish economy to ‘stagnate for 10 years’

THE Irish economy will stagnate for 10 years but that is a much better prospect than if it were not a member of the eurozone, according to a leading European economist.

Director of the Centre for European Policy Studies Daniel Gros said the eurozone countries must create a monetary fund and prepare for the insolvency of a euro country.

Ireland, together with Spain, is one of big losers from the current crisis because 20% of its GDP came from the construction sector, which has now collapsed. “Losing what is effectively 20% of your economy is not good. Ireland will have a very tough time ahead,” he said.