ESRI warns plan could overheat the economy

A leading think-tank has warned the Government’s plans could potentially add too much fuel to the economy and lead to another bust.

Kieran McQuinn, research professor at the Economic and Social Research Institute (ESRI), said the additional public funds amounting to €116bn over 10 years come at a time when the economy is already booming.

The ESRI — whose staff played a significant role in framing the draft of the National Development Plan — and other watchdogs, including the Irish Fiscal Advisory Council and the Central Bank, have long warned about the risks of the Government pumping too much into the economy. They say, however, that the economy is not overheating at this time.