Ireland is currently in a state of phenomenal boom, boasting the fastest-growing economy in the European Union, which is one of the best-performing in the industrialized world. This can partially be attributed to the injection of billions of pounds worth of European structural funds and the efficient management of the National Debt.
Between 1993 and 1997, the economy grew by an unprecedented 40 per cent, and the trend has continued with growth in 2000 estimated to have reached 10.5 per cent in real GDP and a record 9.8 per cent in real GNP. This has led to lower interest rates, significantly lower unemployment and higher standards of living, in addition to spiraling house prices.
In mid-2001, Ireland's unemployment rate was at an all-time low of 3.7 per cent. However, interest rates are rising at a rate, which is set to continue. In the summer of 1999, rates were a comfortable 2.5 per cent while in July of 2001 rates were 4.5 per cent.
Spiraling inflation and house prices are also of significant concern. Endless disputes over wage increases in the public sector could potentially damage the economy and its rate of growth considerably.
As one of the first to satisfy the criteria for the introduction of the euro, the country joined the new European single currency on January 1, 1999 when the Euro went into use for electronic transfers and for accounting purposes. Euro coins and bills were issued in 2002, at which time the punt or the Irish pound ceased to be legal tender.
Also on January 1, 1999, control over Irish monetary policy, including setting interest rates and regulating the money supply, was transferred from the Central Bank of Ireland to the European Central Bank (ECB) which is responsible for all monetary policies of the European Union.
While the term 'Celtic Tiger' is used to define the strong booming economy, not all are basking in the affluence. Many suburban areas of the major cities are dogged by cycles of long-term unemployment, where whole generations of families have been without work. Drug addiction, crime and violence blight Dublin life, just as elsewhere in Europe. In addition, it is not uncommon to see homeless young adults and children begging on the streets of the city.
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