Over the longer term, the key to restoring competitiveness is containing domestic inflationary pressures, including the evolution of pay, and to improve productivity growth. A number of policy measures are relevant in this regard including boosting competition, reducing the regulatory burden on business, investing in infrastructure, improving educational standards, encouraging R&D and innovation, maintaining macroeconomic stability and increasing flexibility.
In general, Ireland  4  BIS Review 46/2008  needs to remain a good place to do business with policy settings supportive of enterprise, investment and innovation. The labour market has performed well over recent years and unemployment is at a level that probably represents a position close to full employment for the Irish economy.