European Commission raises concerns over Irish debt and rising rents that could scupper economic recovery

The European Commission has issued a series of “early warnings” on potential pitfalls that could scupper Ireland’s economic recovery, a day after the government’s budget watchdog admonished its “imprudent” spending plans.

The Commission highlighted a number of areas of concern including the country’s continuing high level of public and private indebtedness and stuttering property market.

House prices, which have climbed 7.6% in the past 12 months despite the dampening effect of Central Bank lending rules, are singled out as one area of concern while issues in the rental sector are also identified.