Follow Ireland Investment Immigration for updates on Ireland's economic news: On the 14th, Olli Rehn, the European Commissioner for Economic and Monetary Affairs, stated that the European Commission is discussing with Ireland how to ensure a smooth conclusion to its international rescue in the coming months, with discussions also taking place within the Eurogroup. The €67.5 billion three-year rescue program provided by the Eurozone and the International Monetary Fund (IMF), along with accompanying budget and fiscal policy restrictions, will expire on December 7 of this year. Rehn stated: “Currently, the reforms that Ireland has committed to undertake in order to receive financial assistance are progressing steadily, and economic growth is performing strongly. Preliminary consultations with the Eurogroup indicate that the country may not require any special arrangements to successfully achieve the goal of exiting the rescue program.”
On the 13th, Enda Kenny, the Prime Minister of Ireland, declared at a meeting of the ruling party that “Ireland will exit the international organization rescue program in mid-December without the assistance of EU partners,” marking the end of Ireland's “economic emergency era.” This is the first official confirmation from Ireland regarding the timeline for exiting international assistance. Kenny stated: “Ireland has a long way to go before economic recovery, but the era of relying on international aid will be over.”
The coalition government of the ruling party and the Labour Party will release the 2014 fiscal budget this week, which includes a €2.5 billion spending cut and tax increase plan. Irish Finance Minister Michael Noonan stated that although the scale of deficit reduction is far below the €3.1 billion target set by international creditors, the government can still make adjustments in other areas to ultimately achieve the target. Noonan indicated that Ireland may exit the international rescue program without the guarantee of a precautionary credit line. Analysts suggest that the refusal to adopt a precautionary credit line will prevent Ireland from entering the unused direct monetary transaction scheme (OMT) of the European Central Bank, indicating that the Irish government is confident in relying on its own strength to achieve domestic economic recovery.