The Irish Economic and Social Research Institute has warned the Irish government that at least 200,000 people will emigrate from Ireland by 2015 if the issue of employment is not addressed.
They told the Irish government that it will have to make over €7.5 billion out of the economy if it plans to eliminate the State’s deficit by 2012 also.
The group’s new report “Recovery Scenarios for Ireland” says that cost of bailing out Anglo Irish Bank and Irish Nationwide, which comes to €25 billion, will seriously hinder the countries growth.
Professor John FitzGerald spoke to RTE’s radio show “Morning Ireland”. He said that the economy could start to grow after 2012 if there were no unforeseen factors.
He also said that a mixture of spending and tax hikes would be necessary to bring in revenue and bringing borrowing in the country under control would need to be a priority.
The unoptimistic report essentially stated that they believe that economy will improve though they could not say when or by how much.
It stated that the GDP growth could reach up to 4.6 percent or only 3.2.
Ideally they would like to see the international economy recovers, exports surge, competitiveness improve, banks resume lending and to have the Irish government implement policies and tackle unemployment.