In this context, one has to consider the astonishing experience of Ireland, which recovered from poor economic and fiscal conditions in the mid-1980s to an impressive pace of economic activity and sound  2  BIS Review 33/2004  fiscal position in no more than a decade.
In addition to a favourable macroeconomic environment and the benefits derived from participation in the European Union, the economic recovery was grounded on far-reaching home made structural reforms in the labour, capital and product markets. The strengthening of the labour market was strongly underpinned by a supportive policy framework.