In Ireland we find ourselves in an unusual position; we are negotiating entry into a programme of financial support although the economy is beginning to recover. Because of our sustained efforts to stabilise our public finances over the last two years, our budget deficit will decline to just over 9 per cent next year.

It is now expected that gross domestic product will record a small increase this year on the back of strong export growth. Exports have held up remarkably well throughout the downturn. They are expected to grow by 6 per cent in real terms this year thanks to an increase in demand in our trading partners and also a significant improvement in our competitiveness over the last two years.

Yet, notwithstanding our strong economic base, our banking problems remain and have in recent weeks required us to seek external support.