ECONOMIC consultant Dr Peter Bacon has predicted that Ireland will be one of the eight core EMU currencies when monetary union begins in two years time.

Speaking at an investment seminar on EMU organised by consulting actuaries Mercer, Dr Bacon said that post EMU there would be no significant changes in financial relationships between borrowers and lending institutions.

"The issue of credit quality in respect of borrowing by national governments would become larger than it has been in the past, because governments would no longer be in a position to print money or rely on `bail outs'," he stated.

He added that because of the depth of the bond market post EMU, many front line companies could find it easier to raise long term debt directly through that capital market.