The ESRI report on the economic implications for Ireland of economic and monetary union, which I commissioned last year, is a comprehensive analysis of the impact of economic and monetary union on the Irish economy. The report examined the implications for Ireland of a number of membership scenarios, including the situation where Ireland joined economic and monetary union but the UK, at least initially, did not do so. The consultants concluded that, on balance, membership of EMU, even were the UK not to join, would be beneficial for Ireland. The detailed sectoral analysis in the ESRI report of the impact of EMU on the tourism, retailing, agriculture, manufacturing industry and financial services sectors should be of considerable interest to all those preparing for EMU, both in Border areas and elsewhere.
As regards preparations, I should point out that preparedness for EMU, as for other changes in the economic environment, is primarily the task of businesses and individuals themselves to ensure. I take it, therefore, that the Deputy has in mind the measures being taken by the State to facilitate businesses and individuals in doing so.
The first requirement here is the provision, as far as possible, of a sound and stable economic environment conducive to sustainable economic and employment growth. The present economic climate in Ireland is characterised by high economic and employment growth, low inflation, sound public finances, interest rates close to historically low levels and a high level of investment, notably under the community support framework. My recent budget was designed to improve this climate further, in particular by providing tax and social insurance reductions aimed at securing continuing wage moderation and by improving our corporation tax structure.