Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Dr. McDonnell spoke about the small amount of fiscal space that exists and about how the commission is calculating it. I do not want to go into the debate around how the one-size-fits-all approach does not fit Ireland. However, not only have the commission reduced our net fiscal space through their method of calculation, but the Department, through the Government, are reducing it voluntarily through this margin of convergence.

There has been some debate on hidden fiscal space, that is, the hidden fiscal space that will undoubtedly present itself on the eve of the budget, in that the €150 million of the margin of convergence will no longer be used and we presumably will be able to spend that money. What is NERI's view on the margin of convergence? Should we be setting aside another €150 million that we will not use despite the crises in certain sectors, not least housing and health?