Market pulse: Stuart Fitzgerald on the key trends in the Irish SME sector

What will the reopening mean for different sectors of the economy? Up to date data show some firms are about to get Christmas-eve levels of demand, while others see the middle of Lent. How should the government react?

The second instalment of ECB’s pandemic plan is unnecessary and rushed. But the actions are also likely to put a floor in equity markets - the combination of aggressive monetary stimulus measures and on-going fiscal stimulus measures is a benign omen for equity markets.

In the aftermath of a crisis, the data shows that highly skilled workers - rock star employees - seek the safety net of larger employers with less debt and more certainty. Unless we make policy changes, Irish indigenous exporters and early-stage high growth companies are likely to bear the costs.

The sea-change towards remote working has been bubbling under the surface for years - not only as a employee acquisition and retention strategy, but as a way to solve many societal issues. And as we have seen in this crisis, it has been implemented smoothly and quickly.

There's a growing consensus among policy wonks that, for depressed economies, fiscal stimulus is the way to go. The problem is that the prescription doesn't fit Ireland very well. Government spending relieves suffering but in Ireland, it doesn't grow the economy.

Many of Ireland’s semi-states have been hit hard by the crisis. They can limp on for a period, but they will need a bailout. When that happens, and it will happen, the government must act like the Troika and demand transformation.

Nationalising private hospitals and their professional staff will not make the health service any better. All that would be achieved would be increasing taxes in order to redistribute waiting time costs. And, of course, increasing the budget provision for the HSE.

The Bank of England is running an increasing risky policy setup, and there is now a material chance of significant sterling weakness in the months ahead. This is bad news for Irish exporters.

Whatever new government is formed, it should consider a coalition of public and private thought that will absorb the lessons of this extraordinary period to inform how we might better organise ourselves for the future.

Having covered the macro requirements and solutions for a sustainable global recovery in Part 1 of this series, today Ross Hunt outlines the role start ups can play, mistakes we are already making and how to avoid them, before specifically addressing the Irish stimulus response.