ESRI warns Govt against move to buy next election
25/04/2006 - 07:40:33The Economic and Social Research Institute has warned the Government that any attempt to buy the next election could damage the economy.
In its latest economic commentary, the organisation says a pre-election spending spree could drive up inflation and damage Irish competitiveness.
The commentary predicts economic growth of 5% for both 2005 and 2006, but it also echoes warnings from the Central Bank about the risks posed by spiralling house prices.
The ESRI says a recent acceleration in house prices has increased the risk of a "correction" that could see prices fall by more than 15%.
However, it predicts that this will not happen and that price increases will instead slow down gradually.
