The general election outcome is likely to lead to a “more relaxed” budgetary stance with greater public spending but will not, for now, affect the State’s suitability for investment, ratings agency S&P has said. The result of Saturday’s election left Sinn Féin, Fianna Fáil, and Fine Gael as the three biggest parties with an almost equal share of seats. This could include “a more relaxed budgetary stance, despite still-high public debt”, it noted. “The process of forming a government is likely to be protracted, and a further election cannot be ruled out,” it continued. Public spending“In response, the next Irish government may choose to relax its budgetary stance by raising public spending on investment and for social needs, without introducing offsetting revenue-side measures,” the agency said.

Source: The Irish Times February 11, 2020 10:30 UTC