Sunday 18 March 2018

There isn't any need to raise corporate tax rate

Any EU nation that believes the payoff for the bailout is a change in Irish fiscal policy is overstepping the mark, writes Colm McCarthy

THE arrival of the IMF and European missions last week had become inevitable: neither the Government nor the banks have been able to finance themselves in the markets at affordable interest rates for several months now.

What had been a deficit crisis became a debt crisis, and there can be no four-year time horizon in dealing with a debt crisis. An immediate resolution is required and the galloping indebtedness of the commercial banks to the European Central Bank will finally be addressed.

The budgetary strategy which must now be pursued will not, in all likelihood, differ hugely from what would have had to be undertaken anyway, as Central Bank governor Patrick Honohan insisted on Thursday.

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