EC: Weak fiscal governance rules cost Ireland dearly

THE cost of the country’s borrowings on the open market would have been considerably less if the country had a rules-based fiscal governance system in place, the European Commission has said.

A commission analysis painted a bleak picture of the future of Europe’s economies, with a constant struggle to stem debt and create growth. This, together with fears that Greece will default, sent the value of the euro lower and hit shares globally.

The European Commission’s twice-annual report on public finances in the EU said reforms to cut debt should be at the centre of government policies. Debt to GDP is forecast to be more than 83% next year.