The Governor of the Central Bank said some painful cuts could have been avoided if Anglo Irish Bank was nationalised, but that it was not responsible for the bulk of austerity measures.
Patrick Honohan has been appearing before the Oireachtas Banking Inquiry where the night of the Bank Guarantee dominated proceedings.
Professor Honohan said that nationalising Anglo would have saved some money, but that 80–90% of the overall hardship was unavoidable.
Socialist party TD Joe Higgins asked Patrick Honohan whether some cuts could have been avoided by winding up the bank.
Asked if even €10-12 billion would have helped in the avoidance of cuts to services, Honohan said "absolutely, there's no dispute about that."
"That it's only a portion, and a relatively small portion, doesn't mean it isn't worth doing. It should have been done in that scenario," he said.