Central Bank warns about inflated 2014 GDP figure
The Central Bank has increased its forecast for Irish economic growth for last year and this year in its latest review of the economy.
The GDP estimate for 2014 has been raised to 5.1%, which is a 0.6% increase on the Central Bank’s previous forecast. GDP is said to grow by 3.7% this year and 3.8% next year.
However, Central Bank economist John Flynn said the 2014 GDP figure was …
Michael Noonan: 'I am hopeful State will recoup €30bn from banks'
Finance Minister Michael Noonan has said economy activity will return to pre-crash levels this year.
He also indicated that the taxpayer could see a potential return from the banks of up to €30bn over time.
Speaking this evening in the Dail, Mr Noonan said: “It is worth pointing out that this year, the level of GDP in Ireland will likely return to its pre-crisis peak; however it will be more …
Moody's: Banking sector weak, expecting growth of 3.8pc this year
FISCAL policy is being loosed “significantly” by the Government meaning debt will probably fall at a slower pace than expected, Moody’s has warned.
The credit ratings giant said the economy was recovering at a reasonably strong rate, but constraints include the high levels of public debt and weaknesses in the banking sector.
It warned that the strong investment performance underway here will require a pick-up in bank lending, yet it …
EU adds Belgium to its tax avoidance investigations
The European Commission is investigating a Belgian system allowing companies to reduce their tax bills significantly, it said on Tuesday, widening its inquiry into tax deals struck with multinationals across the European Union.
The Commission, which rules on competition and subsidies in the European Union, said deductions granted through Belgium’s “excess profit” tax system usually amount to more than 50 percent of profits and can sometimes reach 90 percent.
IMF and OECD latest to snub banking probe
The banking inquiry has been dealt another blow after another two key international bodies involved in assessing Ireland’s economy refused to turn up for public hearings.
The IMF and the OECD are the latest organisations to shun the inquiry after the European Central Bank recently said it would not be quizzed by TDs in Leinster House.
However banking inquiry chairman Ciarán Lynch yesterday said that he will meet Central Bank …
Brokers lower forecast for CPL
Analysts have rowed back on full-year forecasts for CPL Resources, despite the recruitment firm issuing a relatively strong set of first-half figures yesterday.
CPL’s results — for the six months to the end of December — showed a 5% year-on-year jump in group revenues, to €193.2m and a 5% increase in gross profit to €28.3m. However, operating profit for the period was down by 13% at €5.97m, as were pre-tax …
Plan for Europe capital market
Proposals to create a US-style capital market across Europe to increase firms’ financing options could give European regulators more powers at the expense of the City of London, a European Union document showed.
The plan aims to create a so-called capital markets union by 2019 from Europe’s fragmented bond and stock markets. It outlines possible reforms to allow markets, rather than banks, to become the main source of cash for …
€315bn EU investment plan may create 2.1m jobs
The European Commission’s €315bn investment plan to spur growth could create 2.1m net jobs, lowering the bloc’s jobless rate by 1% by 2018, the International Labour Organisation (ILO) said yesterday.
But if the three-year plan, announced by Commission chief Jean-Claude Juncker in November, fails to attract and leverage private investment, it would create just 400,000 jobs, barely making a dent in the EU’s 23m unemployed, it said.
“If the plan …
Plans to cut tax may boost growth, says troika
Government plans for tax cuts and additional expenditure could increase growth this year, the troika says in its review of the country’s economy.
However the troika continues to have reservations over the Government’s refusal to put more money into bringing down the country’s budget deficit faster.
They also warn that the Government changes to Irish Water charges means it could have problems raising funds for needed investment and increase the …
‘Rules will stop another housing bubble’
The new rules for mortgage lending will have less of an impact on the property market than “people might think”, according to the governor of the Central Bank, Patrick Honohan, who said their aim was to prevent another housing bubble from forming.
Only a quarter of first-time buyers in 2014 would have been affected by the new mortgage lending rules and 80% of these would only have had to increase …