Report issued on fiscal consolidation efforts in eurozone

The Irish Central Bank yesterday issued a report into the efforts to fiscal consolidation among the eurozone bailout countries including Ireland.

In a dense 15-page report, it concluded that “the burden of consolidation [a policy intended to reduce deficits and the accumulation of debt] can at times be high relative to the aspired pay-off in terms of improvement in the debt.

“In terms of how effective consolidation efforts are in bolstering more stable debt dynamics, the lever over which discretionary fiscal policy has direct control — the primary balance — plays just one part.”