Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

If I interpret him correctly, Professor McHale is saying there will not necessarily be a need for new budget day measures in terms of fiscal consolidation, but if we are standing still in terms of spending levels and on the tax side - credits and so forth - in real terms vis-à-visthe nominal GDP and inflation, that is a real cut in terms of standard of living, which is what it will translate into. Professor McHale is envisaging a very significant cut in spending.
While Professor McHale is making the point that the Government does not have to do this by 2018, what are our options in terms of meeting our responsibilities under the fiscal compact treaty to achieve the medium-term objective? Over what period of time could we be doing that, and would that be better in terms of more gradually achieving that objective instead of doing it over a tight three-year window after next year?