Abstract

Ireland has emerged as one of the most globally competitive economies in the world. A combination of factors has turned the Irish economy into a ‘Celtic Tiger’. These include tough cuts in government spending since the late 1980s, ‘National wage partnership programmes’ which fostered co- operative industrial relations, reduction in taxes, targeted Irish government programmes to attract foreign direct investment and financial support from the European Union. The return of the Fianna Fail (soldiers of destiny) and progressive democrats to the coalition government after the May 2002 parliamentary elections is seen by many as a vote of confidence in the centre-right policies of the previous administration. Economic growth slowed in the first nine months of 2003, compared with 2002. Investment, exports and imports showed negative growth. The manufacturing sector was the hardest hit. But Irish equities rebounded strongly in 2003, in line with developments elsewhere in Europe and north America. A surge in revenue towards the end of 2003, combined with stricter expenditure control, has ensured that the budget almost balanced for the full year.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Irish economy, European Union, Celtic Tiger, Foreign direct investment, Ango-Irish treaty, European economic community, Labour reforms in Ireland, Fianna Fail, Progressive democrats, Irish government, Irish industry, Foreign trade in Ireland, Irish Chambers of Commerce, Foreign investments in Ireland, Software industry in Ireland