Let me start with the government finances. After the dramatic budgetary correction of the late 1980s, this was not expected to be a problem. Indeed, as shown in Chart 1, Ireland ran a balanced budget on average for two decades before the collapse of 2008.
This is the best form of preparation and will contribute to increasing our long term growth and welfare. The reforms of the Basel Committee are intended to address these identified shortcomings by promoting a more resilient banking sector that can support more sustainable growth over the long run. Let me elaborate on our reform programme, which is nearing its final stage of completion.