Finance Minister leaves room for manoeuvre

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'We have no idea what is going to happen, we have no idea when it will happen but rest assured you are in good hands.'

Paschal Donohoe, the Finance Minister, approached the country's economy as a doctor might speak to a patient.

Even before it happens, it is worth looking at the diary over the coming months. The deadline of 31 October for Britain to leave the EU is open to question. So he is going for one Budget and hoping he can read the lie of the land in advance. He is facing two choices: hit the brakes or apply the accelerator.In that scenario, the normal course of action is to take money out of the economy in order to slow things down.

He would also lower tax collections, which would act as an economic cushion. It means Ireland will run a deficit at a time when it has borrowings of about €200bn.

 

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FG under Garret Fitzgerald doubled the national debt in the space of a few years - is history going to repeat itself ?

Famous last words of a clueless government....

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