Ireland’s Frisell Says ‘No Way Around’ Budget Consolidation

Irish Central Bank Chief Economist Lars Frisell said there is “no way around” consolidating the nation’s budget as it seeks to recover from its fiscal crisis.

“Any measures by the ECB that would help the confidence crisis of course would be beneficial to Ireland, too,” Frisell, who took up his position in June, having previously held a similar role at the Swedish Financial Supervisory Authority, said at an event in Dublin today.

While exports are currently driving Irish economic growth, “I think Ireland can quickly get out of this” crisis if consumer confidence recovers, he said.

Ireland, home to the euro region’s biggest banking crisis to date, returned to growth last year for the first time since its real-estate market started to fall in 2007. The country’s bond yields have fallen in the past year on optimism the economy is stabilizing, facilitating the government return to bond markets.