ECB says member states must start reducing debt immediately

EU Commission report said Ireland 'retains the capacity to service its debt' and despite a number of challenges, 'its economic, fiscal and financial situation is sound overall'

The ECB said budgetary efforts required by states in response to a number of challenges could amount to at least 5% of gross domestic product.

Eurozone nations must start reducing their national debt immediately in the face of enormous long-term fiscal risks from ageing populations, defence spending and climate change, the European Central Bank (ECB) has warned.

In an article, the ECB argued each of these developments would be challenging in isolation but a number of “countries will face all of them simultaneously”.