Wednesday 20 June 2018

Colm McCarthy: Events beyond satire conspire to warn us that the State debt hasn't gone away

Economic recovery remains fragile 10 years after bubble burst as many banks wrestle with fears of new debt crisis, writes Colm McCarthy

A re-run of the Eurozone sovereign debt crisis would make things
difficult and last week it looked as if Italy had unhinged the markets yet again. Photo: Copyright 2010 © Alexander Karasev
A re-run of the Eurozone sovereign debt crisis would make things difficult and last week it looked as if Italy had unhinged the markets yet again. Photo: Copyright 2010 © Alexander Karasev
Colm McCarthy

Colm McCarthy

When the Irish Government finances became seriously unbalanced in the late 1980s, it took a decade of cautious budgets and steady economic growth to get things back into shape.

Unfortunately, a combination of profligate banks and careless expenditure control produced a bigger crisis in 2008. Recovery from the subsequent recession has been better than many expected but the job is only half-completed. Budgets need to stay cautious for many years to come: likewise the domestic banks and their supervisors.

A re-run of the Eurozone sovereign debt crisis would make things difficult and last week it looked as if Italy had unhinged the markets yet again.

Please sign in or register with Independent.ie for free access to Opinions.

Sign In

Today's news headlines, directly to your inbox every morning.

Don't Miss