The OECD’s 2010 Economic Survey of Ireland recorded that growth in GDP per capita had been among the highest in the OECD until the economic downturn. In the wake of the financial crisis, the economy plunged into a severe recession in 2008. The sharp slowdown in activity contrasts with the rapid expansion from 2002 to 2007. The downturn has revealed a weak underlying fiscal position. The authorities have already taken important steps to restore stability, but more will need to be done and the adjustment will be prolonged. Major economic and policy adjustments are now taking place to address the situation. Better Regulation has an important part to play in this process. Regulatory as well as policy failures were a fundamental factor underlying the downturn. This implies that beyond the sector specific actions that are needed in complex sectors such as banking, the application of general regulatory policy principles such as ex ante impact analysis of regulations, public consultation and robust institutional frameworks need to be vigorously promoted.