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ECONOMY: McCarthy warns we are facing third crisis

ECONOMIST Colm McCarthy has warned that Ireland could face a third macroeconomic "cock up" within one generation if it does not address the systemic failure that underlies the current crisis.

Mr McCarthy, who chaired the Special Group on Public Service Numbers and Expenditure for the Government, attributed the poor macroeconomic management to several causes, including a decline in the calibre of public servants.

And he said that the public service was a "victim" of free third-level education and "no longer had a monopoly on the best and brightest" school leavers.