Fiscal Consolidation Strategies: Evidence from the International Experience

Although Ireland has done much already to reduce its government deficit, the scale of the fiscal adjustment required means that there is still some distance to go. In international terms, Ireland's fiscal consolidation will ultimately prove to be one of the largest recorded in the Organisation for Economic Co-operation and Development (OECD). In relation to the policy landscape, the extent of the policy challenge and the agreed goal of reducing the deficit have long been clear. The issue that remains is to determine which policy options to execute in order to reach that goal.