For example, the European Commission is concerned about the possibility of Ireland's deficit going out of control and surpassing the 3% limit that the European Monetary System imposes. In fact, the Department of Finance estimates the deficit will reach 13,3 billion euro, that is 7% of GDP. (Keenan 2008) the introduction of the European Monetary union caused financial shocks in Ireland, affecting especially the nominal interest rates which fell. This had a consequence upon the capacity of the labour market to "absorb immigration" and it will continue to affect employment performance through the diminishment of competitiveness. (Honohan 2005). This, together with the international financial crisis will diminish the country's capacity to attract FDI. As the prices go up, the state is forced to intervene in order to support categories such as the young, the poor, etc. This means a reorganization of the budget with a more socially-oriented perspective. This social...
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