Bruton calls for relaxation of credit squeeze

Ireland and Europe risk destroying economic recovery by “our enthusiasm to undo the mistakes of the bubble economy”, claims former taoiseach John Bruton.

He said the country is making the “exact same mistakes again, except in reverse” because banks, which had operated under light regulation in the Celtic Tiger years, have become far too conservative.

In a speech at the weekend to a gathering of Irish people with special connections to the US, he criticised the “virtuous politicians” who “reflect rather than lead the public mood, saying we need to slam down the doors on excessive credit”.