Friday 21 July 2017

Brendan Keenan: EU's 2014 borrowing target makes absolutely no sense

Brendan Keenan

Brendan Keenan

TODAY'S report from the Economic and Social Research Institute (ESRI) is one of the most important in its 50-year history.

As the main political parties reaffirmed their support for reaching EU borrowing targets by 2014, the ESRI says such a plan could plunge the economy into a period of prolonged deflation, amounting to a "lost decade".

There may well be some re-shuffling of positions today. Based on the ESRI report, it might have been better if the parties had done things the other way round -- disagreed on the deficit target, but sought consensus on the sacrifices that have to be made, whatever the target.

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