Professor John McHale:

Along the lines of what Dr. O'Sullivan said, just because Ireland has a relatively high growth rate does not make the framework inappropriate for it. As she said, if one has a higher growth rate, one can have higher expenditure figure. The advantages of the framework in making sure we pursue a sustainable policy are just as great for Ireland as they are for other countries. In newer forms of the framework new flexibilities are being built in. That means that if one's growth rate is lower or one operates well below one's potential, the adjustment one must make is reduced. There are new allowances made for countries which are undergoing certain structural reforms that will have a positive long-term impact on their public finances which can be taken into account. The framework is moving towards being more flexible.