Central Bank says ongoing supports should be 'targeted and temporary'

Increase in spending was second highest in euro area

The Central Bank said the supports introduced in Ireland were large compared to other European countries with the increase in primary government spending the second highest in the euro area. Picture: Jason Alden

Policies to support the Irish economy through the Covid crisis must continue in the short term but any ongoing spending should be targeted and temporary once the health risks diminish, the Central Bank has said.

An Economic Letter published by the Central Bank yesterday examines the impact the pandemic has had on the public finances. It notes that the supports introduced in Ireland were large compared to other European countries with the increase in primary government spending the second highest in the euro area.