McCreevy warned of economic danger ahead of giveaway budget

Former finance minister Charlie McCreevy informed his cabinet colleagues of a warning that the Irish economy was entering a “dangerous phase” just months ahead of his 2001 giveaway budget.

That budget projected a general surplus of £3.9bn for the year. It included a 2% cut in the standard and higher rates of income tax. It also introduced the free medical card for over-70s and an increase in child benefit of £25 to £67.50 per month for the first and second child, and by £30 to £86 for subsequent children.

Government papers released under the Freedom of Information Act record Mr McCreevy telling cabinet colleagues in the Fianna Fáil-Progressive Democrat government that the IMF had warned that Ireland was entering “a potentially dangerous phase”.