The emerald isle. Ireland's Ahern forms a coalition with the Greens

clipped from www.economist.com During his decade in power, Ireland's economy has in all but one year expanded more rapidly than any other in western Europe. Unemployment was eradicated in 2000, and the economy has gained tremendously from immigrant workers from the new EU member states. Also, the government has benefited from higher tax revenues arising from strong domestic demand and a soaring property market. More modest increases can be expected in 2008, not least because of the less rosy revenue outlook. Under our central economic growth forecast, expected trends in revenue and expenditure should cause only a moderate deterioration in the fiscal position over the outlook period. However, as our GDP forecast, of 5% in 2007 and 3.4% in 2008, is subject to large and growing risks, the fiscal outlook is also clouded. In the decade up to 2006 residential property prices in Ireland rose more rapidly than in any other developed-world economy.