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UNI General Secretary Philip Jennings said, “The NERI report shows how lack of leadership both at national and European level is crippling our economies. Ireland is feeling the pain along with the rest of Europe. This week the latest Eurostat figures showed unemployment across the Eurozone hit a record high of 11.8% in November. Today the Greek jobless peaked at 26.8% with fears of it rising to 30% later in the year. Until the wealth gap is bridged there will be more social unrest spreading north across Europe. NERI is right to draw attention to the size of the problem in Ireland which is one of many struggling economies being damaged by misguided and cynical austerity measures. Europe must change direction to once again embrace a social agenda which leaves no-one out. A Europe-wide inclusive jobs growth plan is the only way to dig us out of the current economic mire.



The NERI report makes the following forecast for Ireland’s economy:

· annual GDP growth of less than 1% per annum for the next two years and 1.8% in 2015;

· a further contraction of the domestic economy following Budget 2013; and

· a further increase in unemployment in 2013 and 2014.

The report says, “Given this, the prospect of higher budgetary deficits, larger numbers unemployed, further austerity measures and the contracting domestic economy leads us to question the Government's capacity to reach its fiscal targets in 2015 and to limit the increase in the national debt without significant changes in policy approach as well as improvement in international conditions.”

Read the full report here