The State’s financial watchdog says the Government risks repeating the same ‘mistakes’ that led to the financial crisis by failing to stick to budgetary guidelines.
The Irish Fiscal Advisory Council says the Coalition’s plans to reduce the deficit by 0.3% next year are not in full compliance with the Budgetary Rule or the EU Stability pact - which require a change of 0.6%.
The Council says it accepts that the Government has not followed its advice ‘to the letter’ in the past, and it has significant concerns about Ireland’s fiscal policy into the future.
IFAC Chairman, Professor John McHale, says the failure to follow financial rules could see the mistakes of the past repeated. He spoke to Newstalk Breakfast:
Last month the European Commission issued a firm warning to the Irish Government in its latest assessment of the Irish economy.
While it praises the country's recovery, it was critical of the budgetary targets outlined in the Government's highly publicised Spring Economic Statement.