Private sector credit, competitiveness and our ageing population pose risks to the Irish economy, according to European Commissioner for Economic & Monetary Affairs Joaquin Almunia.
The commissioner, speaking in advance of addressing a meeting of the European Movement in Ireland in Dublin, also said growth in the euro zone would be better than expected this year.
Mr Almunia said membership of the euro had had clear benefits for the Irish economy. It had protected us from external economic shock, boosted attractiveness for FDI and encouraged immigration.
He said Ireland had been losing competitiveness year after year. He suggested that the country needed to step up efforts to encourage research and development and invest in workforce training.
On house prices, he said an 'adjustment' had started to an easing of house price increases, due to the gradual impact of rises in interest rates. 'Everybody will agree that last year's growth was not sustainable in the long-run,' he said.
He said economic growth in the euro zone would be better than previously forecast as increases in VAT in Germany since the beginning of the year had had less of an impact on growth than expected.
On the recent job losses here, the commissioner said Ireland needed to create better conditions for foreign investment and, if appropriate, create incentives for foreign firms to come here.
