State must borrow to build, urges ESRI

THE Government should borrow more to pay for roads and other infrastructural projects, according to the country’s leading economic thinktank.

The Economic and Social Research Institute (ESRI) said yesterday that the Government should use its EU Presidency to force changes in the amount of money countries can borrow for capital investment.

Backing up the Tánaiste Mary Harney's view, the ESRI says a change is needed to the EU Stability and Growth Pact, which limits the amount of debt a country can incur to 3% of its Gross Domestic Product (GDP).