Ireland has piggybacked an EU-sponsored bailout package to turn around its recession-hit economy, says Mr Feilim McLaughlin, Ambassador to India.
“Our economy was predominantly based on transaction taxes linked to the property market,” Mr McLaughlin said during his visit to The Hindu office here.
LARGE DEFICIT
“When the property market collapsed, we ran into a large deficit. We did not have an option but to find innovative ways of raising additional revenues.”
The situation was different from what obtained in other countries. The country opted for an austerity package even in the face of criticism by Keynesian economists.
“But I'm happy to say that our austerity package is working very well and we're now logging 1.6 to 1.7 pc in growth,” the ambassador said.
“Next year, we aim to escalate it to 2.3-2.4 per cent. Things are indeed turning around. It's been a difficult period for us.”
The economy has regained the competitiveness that it had lost during this period of time.
INVESTMENT FOCUS
“We've been investing quite a lot in the education and technology sector. We want to sustain so that we've have strong base for the next phase of growth,” Mr McLaughlin said.
According to Ms Minakshi Batra, Director, India, of Investment and Development Agency Ireland, the country has been ahead of schedule in the repayment of the bailout package.
“There has to be austerity on the part of the government to do that. In fact, even more spend is on the cards in the higher education sector.
“The aim here is to double the number of PhDs and post-graduates. So the country is spending in the right areas and also observing austerity in the right areas.
Competitiveness has come back into the market. Ireland had record year for foreign investments. Year 2011 saw the maximum number of investments flowing in.