Central Bank: ‘No need for austerity measures' to cover Covid recovery bill 

Bank’s director of economics and statistics Mark Cassidy said current Government Covid support measures are sustainable

The Central Bank doesn't see austerity as the solution to a post-Covid economic recovery.

There is no need for the Government to implement widespread austerity measures to cover the costs of the economic damage caused by the Covid pandemic, the Central Bank has said.

This is despite it saying, this week, tax increases – through income tax, Vat or carbon taxes – may be needed to help fund future Government spending. It said ongoing borrowing could hamper Ireland’s ability to deal with future crises by pushing the national debt to dangerously high levels.