Central Bank governor Philip Lane calls for tougher debt target

Central Bank governor Philip Lane has called for a radical resetting of a key debt reduction target for the State, suggesting the traditional debt goal sanctioned by the EU does not work that well for the vulnerable Irish economy.

The idea was floated in a letter the Central Bank governor sent to the minister of finance ahead of the budget.

This year, for the first time, the Central Bank has publicly released the letter — which was sent on August 6 — as part of the regulator’s drive towards achieving increased transparency.