The economic outlook is favourable but could be jeopardised by excessive wage increases or a collapse in house prices.

The next budget should have a neutral impact on the economy. Any stimulatory measures such as tax cuts should be counterbalanced by other measures.

There is further scope for tax reform, particularly PRSI and VAT

The partnership approach to wage bargaining may have outlived its usefulness and should be reformed.

There is scope for further privatisation and regulatory reform in utilities and mass transport.