Ireland’s long-term growth prospects may be better than those of all other EU members, the chairman of Goldman Sachs Asset Management has said. “Medium-term, Ireland’s natural growth potential is probably the strongest of all the EMU members,” Jim O’Neill (above) said in Dublin yesterday.

“Greece can’t grow its way out of it, but Ireland could. If EMU can survive and get through its severe challenges today and ahead, I think Ireland is in a better position fundamentally than people seem to realise,” Mr O’Neill said. Ireland’s “highly flexible labour market” and good relations with eastern and western trading nations were advantages, he said.