Continued sound implementation of the programme is crucial, while developments at the European level can also be helpful. I have already noted the importance of economic developments in Europe to Ireland’s growth. In addition, European policy announcements can also have a significant impact on market confidence and the Irish Sovereign’s ability to re-enter the markets.
In this regard, markets responded positively to the 29 June EU Summit statement and the announcement of the ECB’s programme of Outright Monetary Transactions.15 Irish Sovereign yields declined sharply, facilitating limited bond issues since then. However, these positive developments depend crucially on market sentiment, which can change rapidly.