International risks dampen Ireland's growth outlook

Significance

The Commission's decision is one of several recent international developments that could have a severe impact on Ireland's economic growth. Without continued high growth, Ireland will not be able to move away from deficit budgets in the near future.

Impacts

• Dublin may attract some companies looking for an EU base or seeking to move out of the United Kingdom after Brexit.
• The government's room for manoeuvre in balancing public-sector pay and public services in the 2017 budget will be severely constrained.
• Continued austerity will boost the populist opposition.