Growth prospects for exports 'vanishing rapidly'
The Irish Exporters Association has today warned that the proposal to levy savings accounts in Cypriot banks could re-ignite the Eurozone debt crisis, and push EU markets further into recession.
Other elements of the rescue package includes a €10bn EU/IMF bailout, asset sales and an increase in the corporate tax rate to 12.5% from 10%.
The exporters group argues that such measures are preventing recovery within the Eurozone - which in turn is having a negative effect on trade and jobs here.
Pat Whelan of the Irish Exporters Association said that the growth forecast for this year has not materialised.
"We were expecting this year that we'd be coming out of the recession and we would have good growth," he said.
"We were expecting about 5% growth in our exports.
"But with 59% of our exports of goods and agrifoods going to the EU and 35% of our services, those prospects for growth for exports are vanishing very rapidly."
