In conclusion, Ireland’s past productivity performance has been quite good and the productivity potential of the Irish economy remains favourable. What I have been pointing out today are areas where we need to do better in light of the recent slowdown in productivity.
Spending on financial stabilization also must wind down; if all goes well, the disposition of assets acquired by the Treasury in the process of stabilization will be a source of added revenue for the Treasury in the out years. Determining the pace of fiscal normalization will entail some difficult judgments.