Economy

Governor of the Central Bank Patrick Honohan has once again said he “looks forward” to welcoming foreign owners for Irish banks. Explaining his remarks, he said it is evident that the involvement of new foreign owners could put the banking system on a “firm footing”. He said they can bring capital, risk control and other management skills. Speaking at the Institute of International and European Affairs, Honohan said that the Irish banks need to be downsized, therefore reducing risks and helping the Irish economy demonstrate the tail risk is lower than investors currently believe. “An effective bank restructuring requires that the fortunes of the banks and the budget be convincingly…

Met Éireann said that record low temperatures were seen in parts of the country last night, with some areas seeing temperatures as low as -16degrees. Sub-zero temperatures are expected to last for a few more days with a thaw not expected until Christmas Eve. Forecaster Evelyn Cusack said that there will be no thaw until Christmas Day, when rain and southerly winds are more likely. The weather continues to cause chaos for travellers. The AA has issued road warnings across the country. Dublin Bus and Bus Eireann have confirmed that most services are running as normal but there are some curtailments. Travellers are advised to check their websites – www.dublinbus.ie and…

Ireland’s quarterly national accounts show that both GDP and GNP rose compared with the previous quarter. Seasonally-adjusted GDP and GNP grew 0.5pc and 1.1pc respectively. This is the first seasonally-adjusted increase in both since 2007, according to the Central Statistics Office. At an annual rate, GDP increased by 2pc, while GNP was up by 4.5pc. However, compared with the 2009 third quarter, GDP decreased by 0.5pc, while GNP fell by 1.6pc. Commenting, Minister for Finance Brian Lenihan said this year-on-year growth will turn positive during the final quarter or early in the new year. He attributed the growth in the economy to the “very strong” performance of the export sector.…

European Central Bank president Jean-Claude Trichet told MEPs yesterday that he did not doubt the stability of the euro zone. Asked if he feared a domino effect in light of the debt crisis, he said that this would not happen, adding that Ireland and Greece were both solvent and therefore debt restructuring was not an issue. Trichet was also adamant that domestic democratic processes should not be interfered with, even in the event of a bailout. Asked by Belgian MEP Dirk-Jan Eppink if there is a link between political uncertainty and the financial markets, Trichet refused to draw any conclusions, stating again that democratic processes should be respected. At the economics…

The European Commission has said the Irish economy will grow by just 0.9pc next year. According to its autumn economic forecast, the EC believes the Irish economy will not reach the 1.75pc rate predicted by the Irish Government in its four year plan. The Commission also said the Government’s 2012 growth projection of 3.25pc is too optimistic. It says 2012 growth is more likely to be 1.9pc. Overall, the EC said European growth will experience soft growth next year and a stronger rebound in 2012. It said growth in 2011 will hit 1.75pc and 2pc in 2012. The recovery is “making progress,” though the “shock of the global crisis still…

European Commissioner Jose Manuel Barroso has denied reports that euro area member states are putting pressure on Portugal to ask for external financial aid. Speaking in Paris today, Barroso said there was no talk of a Portugal bailout and no application had been made. “I can tell you that it’s absolutely false, completely false,” commenting on a report in the Financial Times Deutschland today. The FT Deutschland said some euro area states want Portugal to follow Ireland’s lead and apply for external aid to ensure no further contagion is experienced. “If Portugal were to use the fund, it would be good for Spain, because the country is heavily exposed to…

European Commissioner Olli Rehn EU Commissioners Olli Rehn and Michel Barnier have emphasized the importance of strong economic co-ordination and robust EU-level regulation in light of the Irish situation. Speaking to the European Parliament’s economics committee, Barnier stressed the need for unity, stating that the Irish situation demonstrates the strength that comes from working together. EU Commissioners Call for Bold Steps in Economic Co-ordination and Regulation EU Commissioners Olli Rehn and Michel Barnier have said the Irish situation has stressed the need for “bold steps” to be taken for tight economic co-ordination and strong EU-level regulation. Speaking to the European Parliament’s economics committee last night, Barnier said, “The Irish situation…

Ireland’s trade surplus in September was €4.2bn as exports increase by 2pc in the month. According to official figures from the Central Statistics Office, Ireland’s exports rose 2pc in the month and 4pc in the year, when compared with September 2009. At the same time, imports increased by 1pc, resulting in a trade surplus of €4.2bn. Exports for the eight months between January and August increased by 2pc to €58.2bn when compared to the same period in the previous year. The most notable increases occurred in the exports of metal ores and scrap metal, which increased by a massive 89pc. Exports to the US, Belgium and Great Britain account for…

The UK’s chancellor George Osborne has vowed to help Ireland restore stability to its finances. Speaking ahead of the Ecofin meeting in Brussels today, Osborne pledged Britain’s support to Ireland in its efforts to fix its ailing banking system. He said helping its closest neighbour was in his country’s national interest. “Ireland is our closest neighbour and it’s in Britain’s national interest that the Irish economy is successful and we have a stable banking system. So Britain stands ready to support Ireland in the steps that it needs to take to bring about that stability,” he told reporters today. Irish Minister for Finance Brian Lenihan said he was aware that…

EU Council President Herman Van Rompuy said today that the eurozone is in a “survival crisis” but is confident the EU will overcome its debt issues. He said EU members must work together to get through the crisis. He added that national interests could not come ahead of European interests. “We all have to work together to survive, with the eurozone, because if we don’t survive with the eurozone, we will not survive with the European Union,” said Van Rompuy. The president’s comments come before the euro zone’s 16 finance ministers (Ecofin) meet this evening in Brussels where Ireland remains under pressure to accept funding support from the EU. Much…