In a report published this past week by Copenhagen Economics (CE), examinations of the Transatlantic Trade and Investment Partnership (TTIP) showed that nearly 10,000 jobs could be created in Ireland if an agreement regarding tariff and non-tariff barricades is made with the United States.
According to the Minister for Jobs, Richard Bruton, “As a small open economy, Ireland’s ability to grow and create jobs is directly linked to our ability to sell our goods and services overseas. That is why the TTIP is so important to Europe, but Ireland in particular – because it will allow Ireland grow its trade with the US and grow jobs back at home.”
The TTIP agreement would also have a positive affect on wages, increasing the majority of Irish incomes by 1.5 % and 1.9 % in the entry-level sphere. And while the employment rate is currently at its lowest since 2009, economists and stockbrokers expect the rate to fall below the 10% line with the introduction of this agreement.
The key to the TTIP’s success lies in the reductions of tariff barricades, which would increase trade between the US and Ireland in both directions, boosting Ireland’s net imports by €2.4 billion.
House prices will fall, warns Central Bank
According to the Central Bank, their recent 80/20 mortgage deposit rules will have a negative impact on the Irish housing market. Writing in the Sunday Independent, Prof. Kieran McQuinn from the Economic Research and Social Institute (ESRI) warned that the bank’s measures will result in lower house prices and fewer new builds, which, he argues, is the opposite of what we need.
Some commentators have criticised the new rules, arguing that younger people will be excluded from the property market due to the tough restrictions, and will instead remain trapped paying ‘sky-high’ rents.