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Is a fresh wave of austerity inevitable?

Donal O'Donovan


 

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Troika days: The IMF's Ajai Chopra walks past a homeless man on his way to the Central Bank, Dublin back in 2010

Troika days: The IMF's Ajai Chopra walks past a homeless man on his way to the Central Bank, Dublin back in 2010

Warnings: Paschal Donohoe's debt predictions may be worrying the public

Warnings: Paschal Donohoe's debt predictions may be worrying the public

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Troika days: The IMF's Ajai Chopra walks past a homeless man on his way to the Central Bank, Dublin back in 2010

A whopping 86pc of people surveyed this month think austerity is 'very' or 'somewhat likely' - a near consensus that tax hikes and spending cuts are on the way.

"They are right," Davy Stockbroker's chief economist Conall MacCoille says simply.

"Austerity is not a policy choice. If our economy is going to be smaller the only way you can get around austerity is by borrowing and that can't go on forever so its austerity now or austerity later," he says.