But several analysts have warned that the budget will have ultimately little effect on the fate of Ireland’s economy, driven as it is by global forces beyond any politician’s control.
Eurozone interest rates, fixed to facilitate the introduction of the euro, will be reassessed by the European Central Bank on Thursday in the annual monthly ECB meeting. There is strong indication that an interest rate cut will be imposed, which would stimulate growth across the euro zone.
Other good news from Brussels came from Commission President Romano Prodi, when he announced possible reform of the Stability and Growth Pact.
This pact, while well-intentioned when drafted in the early ’90s, has contributed in no small part to Europe’s downturn this year.
One analyst aslo noted that Ireland’s reliance on U.S. multinationals was proving very strong in spite of the economic downturn in the U.S. and worldwide.
More than 500 U.S. companies have Irish bases, employing 90,000 people.