Bruegel blog

• 

  Good deal for Ireland, but no magic bullet

  12th February 2013 by Alan Ahearne

  The promissory note deal announced last week by the Irish government and the Central Bank of Ireland will bring benefits to Ireland’s public finances and to the country’s financial stability. As a result, Ireland’s prospects for economic recovery and its chances of emerging from its EU/IMF programme of financial assistance have improved markedly. Indeed, yields on long-term Irish government bonds are now well below those of Italy and Spain. Read more

  • Sections: Comment
• 

  Decisive action needed to save Greece - and the euro

  21st May 2012 by Alan Ahearne

  One way or the other, the approach of European policymakers to the Greek crisis is going to have to change radically over the next few weeks. A series of EU-IMF loans-for-reforms programmes for Greece has proven to be both economically and politically unviable. The Greek economy shrank by more than 6 per cent in the first quarter of 2012 compared with the same period last year. A drop in economic activity of this scale can only be partly explained by the depressing effects of cuts to government spending and tax hikes. This means that even if Europe were to agree to Greek requests to renegotiate the bailout programme and give the new government more time and more money to meet… Read more

  • Sections: Comment
• 

  Income tax rates will need to rise

  27th January 2009 by Alan Ahearne

  In Ireland the crisis is unprecedented: the solution – a speedy, once-off adjustment – is preferable to the brutality of slowly soaring unemployment. But the public sector did not cause the problem: property did, writes Alan Ahearne. Click here to download this comment. This comment was also published in The Irish Times. Read more

  • Sections: Comment
• 

  Banks over cautious on lending as private equity firms loom

  26th November 2008 by Alan Ahearne

  Alan Ahearne believes that the greatest danger facing the Irish economy at the moment is having troubled banks slash lending to businesses and households. He therefore calls for a large injection of fresh capital into banks to stave off rapid deleveraging. But actions that the Irish Government needs to take to rescue the economy from a devastating credit crunch may well frighten off private equity. So be it, says Alan Ahearne. Click here    to download this comment. This comment was also published in The Irish Times. Read more

  • Sections: Comment
• 

  Financial stability has yet to return to international markets

  22nd October 2008 by Alan Ahearne

  Although the crisis seems to be cooling down, Alan Ahearne warns that the turmoi is not over. The author believes the inevitable sharp slowdown in credit growth resulting from the crisis has all but guaranteed that the global economy faces a deep and prolonged downturn. Click here   to download this comment.  This comment was also published by The Irish Independent. Read more

  • Sections: Comment
• 

  Head to Head

  5th October 2008 by Alan Ahearne

  Should the budget contain measures to boost the Irish property market? Alan Ahearne says 'No', that a fall in property prices and a smaller construction sector are the tough medicine the Irish economy needs while Ronan O'Driscoll, Director of new homes at Savills Hamilton Osborne King, argues 'Yes'. He believes that by encouraging the sale of 30,000 unoccupied homes, the Irish Government could inject €10 billion into the ailing economy. Click here   to download this comment. This comment was also published by Irish Times. Read more

  • Sections: Comment
• 

  Banks must pay fair price for very valuable insurance policy

  30th September 2008 by Alan Ahearne

  The charge to the banks for the Irish Government guarantee should be high to compensate for the risk the taxpayer is taking on their behalf, writes Alan Ahearne. The author raises a series of questions and concerns for the future of Irish banks. Click here   to download this comment. This comment was also published by The Irish Times. Read more

  • Sections: Comment
• 

  Sceptical US politicians slow to buy Paulson's $700bn bailout plan

  24th September 2008 by Alan Ahearne

  Alan Ahearne points out the weaknesses in US Treasury Secretary Hank Paulson's rescue plan for the crumbling of the US financial system. Although timely and greatly needed, the author argues that the $700bn will not suffice. Click here   to download this comment. This comment was also published by The Irish Independent. Read more

  • Sections: Comment
• 

  Despite the turmoil a financial meltdown is not on the cards

  17th September 2008 by Alan Ahearne

  In the light of the American financial crisis, Alan Ahearne raises the question "could it happen here?" and identifies the differences that make Irish banks less likely to face the same fate as their American counterparts. Click here   to download this comment. This comment was also published by The Irish Independent. Read more

  • Sections: Comment
• 

  Courage to say No to vested interests is vital for economy

  15th September 2008 by Alan Ahearne

  Alan Ahearne looks at the Irish housing crisis and identifies ways the Irish Government should prepare for a successful rebalancing of the economy which will require taking courageous decisions. He also gives three elements to consider before introducing schemes aimed at increasing the availability of mortgage credit. Click here   to download this comment. Read more

  • Sections: Comment