EUROPEAN Monetary Union will significantly improve investment in the Irish economy by lowering the cost of money for potential investors, the Minister for Enterprise and Employment, Mr Bruton has said.
Speaking in London yesterday at the Irish Post business lunch, Mr Bruton said the Government expected EMU to reduce the cost of money in Ireland as interest rates move closer to lower European levels.
The economic benefits for Irish businesses would also be substantial. The removal of currency transaction costs and currency risks will bring sizeable dividends for most Irish companies, he said.
"It will become easier and cheaper to trade in the wider Europe. Secondly, and perhaps more importantly to our long term development, EMU will remove a psychological barrier to trade that small companies in particular can face in trading in a complex multi currency environment," he said.
Low nominal and real wage cost increases have been the cornerstone of Ireland's economic growth, he said. "EMU will reinforce such solid foundations."
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