According to media reports, Ireland's economic development has improved significantly. After receiving emergency assistance from the European Union and the International Monetary Fund for three years, the country is preparing to exit the European emergency bailout program and fully return to the financial markets, becoming the first among the struggling Eurozone nations to do so.
Reports state that in 2010, the Irish government was forced to aggressively promote banking operations due to the collapse of the real estate market, leading to a surge in fiscal deficits and the cost of new debt. An aid program with a total value of 85 billion euros was thus created. The program consisted of bailout funds from the EU and the IMF, as well as Ireland's own reserves and pension funds.
In return, the Irish government committed to implementing a four-year fiscal austerity plan, which included significant cuts to fiscal spending, large-scale layoffs of public sector employees, tax increases, and a reduction in the minimum wage. By the end of 2014, the plan is expected to save a total of 16.4 billion euros, equivalent to 10% of the annual GDP.
The reports also indicate that with the help of this plan, the Irish economy has begun to rebound, the unemployment rate has fallen, and the fiscal deficit is expected to drop below 3% of GDP by 2015. The Irish government stated on the 14th that it plans to exit the emergency bailout program on December 15. Once it exits, Ireland will face full market testing against the backdrop of a still-dim European economic outlook and will not be able to join the European Central Bank's untested bond-buying program.
Ireland has stated that with borrowing costs falling significantly, it is confident in achieving economic independence. EU Commissioner for Economic and Monetary Affairs Olli Rehn also stated that Ireland's exit from the emergency bailout program will send a clear signal to the markets and international lenders that the series of economic adjustment measures taken by Ireland have paid off with the help of Europe and the international community.