Morgan Kelly, of University College Dublin, said the government is almost powerless to stop the downturn becoming a severe slump. "We\’re in a classic post-bubble recession, yet we can\’t do anything that a country would normally do in this situation because we\’re inside the eurozone," Prof Kelly said. "We can\’t cut interest rates, we can\’t devalue, and there is a lot less room for fiscal stimulus than people think. We\’re stuck.
It\’s that pesky euro again.