Irish Prime Minister Optimistic About Economy

In a display of strong Irish patriotism and optimism, Prime Minister of Ireland Enda Kenny discussed the recovery of Ireland’s economy at a talk at the Institute of Politics on Thursday.

“Right now, we are on target to correct our budget deficit—steady actions the government has taken are sending strong signals to the financial markets about our determination to stick to our plans,” Kenny said, saying that Ireland saw its first economic growth in 2011 since the crisis began in 2008.

“This evening, I want to send a message to other countries that Ireland can be a role model for them,” he added.

Ireland was one of three countries in the euro zone that received a bailout loan from the European Union and International Monetary Fund to alleviate historically unprecedented deficits during the financial crisis. Since the bailout, Ireland has made significant progress in regaining what Kenny called “economic sovereignty.” Evidence that points to recovery, Kenny said, include a restructured and recapitalized banking sector, a drop in yield rates of Irish government bonds, and increased revenue without tax increases.

With the government deficit and national financial institutions stabilized, Kenny argued that the outlook is positive for Ireland’s standings in the international community.

“There is less talk about Ireland’s difficulties and more talk about Ireland’s recovery,” Kenny said. “Our exports are at record levels...with sectors [such as] software, pharmaceuticals, financial services, business services, and...[the] food industry performing particularly well.”

Kenny also cited the reduction of taxes in certain business sectors, modified access to credit, and other government tactics that will be key to further developing Irish exports and economy.

“What we have to develop is the challenge of stimulating our own indigenous economy,” Kenny said. “The government is focusing on improving the atmosphere and environment so that business can actually flourish.”

Ireland is expected to assume the presidency of the Council of the European Union next year, which Kenny said will be an invaluable opportunity to rebuild international trust and respect for the country.

“We will work to win the hearts and minds of Europe with a new sense of urgency, recommitting to...the ideal and possibility of a dynamic Europe,” Kenny said, mentioning agreements currently in progress aimed to strengthen budgetary discipline in the euro zone.

Kenny said that further recovery in Ireland and the euro zone will require more than just discipline and austerity measures.

“New fiscal rules will only restore confidence if they go hand in hand with greater efforts to support growth,” he said. “We need to do more to generate that growth and that confidence. We need bigger financial firewalls to protect countries pursuing sound economic policies.”

—Staff writer David Song can be reached at davidsong@college.harvard.edu.