Ireland has the advantage of starting from a healthy fiscal position, with one of the lowest debt-to-GDP ratios in the EU. Furthermore, Ireland's demographic profile is expected to remain favourable for some time. The country has a window of opportunity to move towards a more sustainable position.
It is important, however, that considerable practical progress is made in good time in dealing with a problem, which, while not imminent, is nevertheless unavoidable and needs to be addressed sooner rather than later. There are two key issues that need to be addressed. First, measures are urgently required to bring funding into line with the cost of state pensions.