The Irish Fiscal Advisory Council is correct when it points to the central conundrum facing the Government’s budget planning. In the past, as the council’s thorough and well-argued report points out, budget policy has – in the jargon – been pro-cyclical. Too little attention is being paid to this risk in the public debate on the budget options – way too little. A no-deal Brexit may yet be avoided, but the noise surrounding the Conservative leadership gives little cause for confidence. If the soon-to-be-published pre-budget statement from Minister for Finance Paschal Donohoe does nothing else, it will serve a valuable function if it sounds the warning bells on this risk.

Source: The Irish Times June 11, 2019 02:37 UTC