Department of Finance under pressure to seek easing of EU spending rules

The Department of Finance has been urged to demand the EU relaxes Ireland’s fiscal spending rules after senior officials admitted the housing crisis and other social issues are a “risk” that cannot be ignored.

Department secretary general Derek Nolan, second secretary general Ann Nolan, and chief economist John McCarthy came under pressure to seek the change amid growing public concerns over the two-tier nature of the recovery.

Speaking at the latest Dáil Public Accounts Committee meeting and as Finance Minister Paschal Donohoe appeared to open to the door for such a move at a separate finance committee meeting, Mr Nolan and his most senior officials said a number of financial “indicators” show Ireland’s recovery is continuing apace.