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This morning's Irish Times has details of two reports to be issued by the European Commission strongly criticising the Irish government's response to the economic downturn as well as the government's management of the economy during the boomtime.
The article is linked here
Irish recovery plan provokes harsh criticism from Brussels - The Irish Times - Wed, Feb 18, 2009
The report criticises the lack of clarity in the Government’s updated recovery strategy, which proposes to bring the deficit below the legal limit set by the EU within five years.
The commission pinpoints weaknesses in the Government’s plan as “unclear” and “underdeveloped”. The commission report criticises the Government plan as seeking a “sizeable cumulative fiscal consolidation objective which is neither allocated to the revenue or expenditure side nor supported by measures”.I wonder was McCreevy in the room when they wrote that part.The reports say Irish policymakers failed to maintain “a prudent fiscal course” during the boom, particularly in relation to maintaining spending targets. This tendency to change targets “might limit their ability to credibly commit to a consolidation strategy in difficult times”, conclude the reports.If he was I hope he was blushing!
It also warns that the Government’s €440 billion bank guarantee scheme could have a “potential negative impact on the long-term sustainability of public finances”, although in the absence of precise information it is not included in the commission’s deficit forecast.
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Originally Posted by Outlander
