Central Bank warns over high national debt levels

It says tax increases may be needed to cover the continued rise in Government spending

Central Bank deputy governor Sharon Donnery.

The Central Bank has warned that high levels of public debt can limit a country’s “room for manoeuvre” in future downturns.

Speaking virtually to a financial function in France, Central Bank deputy governor Sharon Donnery said an increase in Ireland’s national debt, due to the Government’s extra borrowing to cover emergency costs brought about by Covid and to lessen the impact of the pandemic, was warranted.