McCreevy must borrow for projects

INSTEAD of doling out hair shirts in next week’s Budget, Finance Minister Charlie McCreevy is uniquely placed to give the economy a badly needed shot in the arm by borrowing to fund capital projects and underwrite the soaring cost of benchmarking.

Rather than imposing additional stealth taxes on a beleaguered public, he should cash in on the EU rule that budgetary deficits be kept below 3% of Gross Domestic Product. At 0.8%, Ireland’s deficit is only a fraction of the upper limit.

Any fears that this country might once again incur the wrath of Europe even if it broke the 3% barrier has effectively been scotched by the decision of eurozone finance ministers, including Mr McCreevy, not to punish France and Germany for breaching the Stability and Growth Pact (SGP).