Economists: 'Borrow aggressively' to keep domestic businesses alive 

Economists feel that the July stimulus package will fall short, if the government do not include a credit-guarantee scheme for smaller businesses, and a Vat cut for the tourism and hospitality sectors. Photo:iStock

The stimulus package is in danger of falling short if the Government fails to fashion a credit-guarantee scheme for small firms and doesn't cut the Vat rate for tourism and hospitality, a senior economist has said.

Jim Power said the rising debt burden shouldn’t stop the Government from funding a substantial stimulus package because many Irish-owned firms and swathes of jobs-rich economy companies won’t be able to survive the summer without additional supports.