We have a sort of two-tier economy: on the one side, we have manufacturing and exports, and on the other, we have services and domestic demand. Manufacturing and exports are clearly underperforming the rest of the economy; that’s why we have some differences among euro area countries. Germany, for example, is much more exposed to the external sector. That’s our baseline scenario.
It would certainly give further pause for thought for any firm considering entering the Irish market by increasing the cost of doing business in Ireland and effectively limiting the funding available for mortgage lending. We do not believe this in the interests of current and future mortgage borrowers.