Ciarán Cuffe (Dún Laoghaire, Green Party)
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Question 121: To ask the Minister for Finance his views on the recent IMF report dealing with the Irish economy; and if he will make a statement on the matter. [32940/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As I said in my press release on the day the IMF report was published, on Monday, 17 October, I am pleased that the IMF has commented favourably on the continuing impressive performance of Ireland's economy which is based on sound economic policies.

The IMF has provided a good assessment of Ireland's economic policies and prospects. I note the IMF executive board's concerns about the erosion of competitiveness reflecting a combination of relatively high growth in wages and prices in Ireland over the last number of years. These are risks to which I have frequently referred; regaining competitiveness is vital if Ireland is to maintain economic growth going forward. The IMF forecasts for 2005 are broadly in line with the Economic Review and Outlook published by my Department during August.

On budgetary policy, I point out that the IMF has emphasised the need to build a fiscal cushion in good times in the event that downside risks materialise. This is the sort of prudent advice one would expect from the IMF and in line with the policy over recent years which has brought about a dramatic reduction in the Irish national debt to the second lowest in the euro area.