UK ELECTION TO HAVE IRISH IMPACT? - In the run-up to the British elections Labour's Gordon Brown says he has a 'plan for the future'. Conservative David Cameron wants to 'change Britain for the better' and Liberal Democrat leader Nick Clegg's plan is a 'serious' one that people can 'trust'. But when one of them emerges as a winner next month what could their policies mean for Ireland, and what economic skeletons will come out of the UK closet?
Douglas McWilliams, chief executive at the Centre for Economics and Business Research in London, says the UK's big problem is its large government deficit. He says the bond markets have given the UK a 'few weeks of grace' but will expect action to be taken after the new government takes office. Mr McWilliams says none of the parties has been explicit about how they will do this.
He says the new government will have to cut spending and raise taxes, or else interest rates will go sky-high and there will be a run on sterling. Mr McWilliams says that, as the UK economy will be sluggish over the next few years, this may affect demand for Irish exports.
He says the Conservatives have been looking closely at the Irish corporation tax rate, and may try to push the UK rate in that direction, which may lead to increased competition for foreign investment.
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NEWS IN BRIEF AND CURRENCIES - Official figures show that Chinese property prices rose at the fastest pace in nearly five years in March. The figures are likely to add to concerns of a bubble developing in the property market.
Irish pension funds regained some ground last year, growing by 13.6% to €72.2 billion, but they are still over 16% below their 2007 peak.
On the currency markets, the euro is trading at $1.3648 and 88.47p sterling.
