Extra efforts to engage with the unemployed to get them back to work are required, according to the EU/IMF troika after its latest visit to Ireland.
The troika also says that strict implementation of this year’s budget is essential to keep the country on track to exit the bailout.
In a statement today on its tenth review of the implementation of the bailout programme the troika said significant progress had been made but remaining challenges required continuing policy efforts.
In particular the troika highlighted the need for enhanced engagement with the unemployed and the opening up of competition in sheltered sectors like legal services.
“Ireland’s programme remains on track, the gradual recovery is continuing and there have been further improvements in market conditions for the sovereign and the banks,” said the statement following a visit to Ireland by the troika between April 23rd and May 2nd.
“The authorities have made significant progress on financial sector repair and restoring sustainability to the public finances, yet remaining challenges require continuing policy efforts,” said the statement which said that its discussions with the Irish authorities had included preparations for the programme exit.
“Ireland’s economic recovery is continuing, with growth forecast at about 1 per cent in 2013 and just over 2 per cent in 2014. Weaker than anticipated economic activity in main trading partners is weighing on exports, but domestic demand is somewhat stronger than expected.”
The statement added that a ten-year benchmark bond was recently auctioned successfully and its yield had since declined to a low of around 3.5 per cent.