Ireland could need a €10B stimulus package to boost the economy because of the Covid 19 pandemic. The Irish Fiscal Advisory Council is warning the incoming Government will have to make difficult economic decisions.
The Irish Fiscal Advisory Council says the Covid 19 crisis has had a huge impact on Ireland and there’s exceptionally high uncertainty. Consumer spending is down 5% while a quarter of workers are currently being supported by the State.
Appearing before the special Covid 19 Oireactas Committee the Advisory Council said a 10 billion euro stimulus package could be needed. But Acting Chairman Sebastian Barnes says that figure could change.
”So to clear, this is an illustrative amount and what is important is the right is chosen, and that right amount could easily be much larger than the number we have.”
Sinn Féin’s Pearse Doherty said that it is believed the figure should be €30bn.
Mr Doherty also said the council’s projections do not take into account the issue of Brexit at the end of the year.
The Council said numerous times during the Committee hearing that it doesn’t expect Ireland to return to the severe austerity that followed the 2008 crash. Claims that worry TD Paul Murphy .
”It seems to me that IFAC is at pains to avoid describing this as a period of austerity. But I’d like to explore that further, because on the figures that are here unfortunately it doesn’t seem to me that there’s many other conclusions available.”
The Advisory Council says the incoming Government will have to make difficult decisions and consider three things: our aging population, the cost of meeting climate change targets and our reliance on corporation tax receipts.