Government budget policies run risk of overheating the economy according to European Commission

The European Commission says Ireland should not scrap the Universal Social Charge.

The recommendation comes in a report which raises several fears on the state of the economy.

Leo Varadkar wants to alleviate some of the financial burden on lower paid workers by cutting back on the USC.

However Brussels says our existing targets are going 'in the right direction'.

The report given to TDs last night says the Government's budget policies run the risk of overheating the economy.

The Commission warned that if the USC were abolished, very high personal taxes would be needed to make up the revenue.

The report was given to the Oireachtas committee on finance yesterday. it is critical of some recent government decisions, including the help-to-buy scheme.

The report also raises a concern about the abolition of water charges, and the implications for tax returns as a result.

Government budget policies run risk of overheating the economy according to European Commission


More in this Section

FAI’s debts could surpass €55mFAI’s debts could surpass €55m

Someone is €1 milllion richer following Euromillions drawSomeone is €1 milllion richer following Euromillions draw

Johnson and Corbyn clash on Northern Ireland in TV head-to-head election debateJohnson and Corbyn clash on Northern Ireland in TV head-to-head election debate

Teen motorcyclist killed in road traffic collision in CabraTeen motorcyclist killed in road traffic collision in Cabra


Lifestyle

This Christmas remember that there is no such thing as cheap food.Buy local: Use your LOAF

As we wait, eager and giddy, a collective shudder of agitated ardor ripples through the theatre, like a Late, Late Toyshow audience when they KNOW Ryan’s going to give them another €150 voucher. Suddenly, a voice booms from the stage. Everyone erupts, whooping and cheering. And that was just for the safety announcement.Everyman's outstanding Jack and the Beanstalk ticks all panto boxes

Every band needs a Bez. In fact, there’s a case to be made that every workplace in the country could do with the Happy Mondays’ vibes man. Somebody to jump up with a pair of maracas and shake up the energy when things begin to flag.Happy Mondays create cheery Tuesday in Cork gig

More From The Irish Examiner