Alice-Mary Higgins (Independent) | Oireachtas source

I will focus first on the macroeconomic context. One of the roles of the Central Bank is engaging on the macroprudential policy tools and frameworks that are in place and examining the risks and how those tools and policy frameworks respond to risks.

Covid is the current great risk we are dealing with but it is inside a wider context of the risks and changes represented by the climate and by emission reduction as a core goal.

I am conscious that our guests have limited time to respond, so an additional written reply would be useful. Will they nonetheless comment now on the position that Ireland has been taking in respect of a number of the macroprudential policy tools that are currently in play? I refer specifically to the large system of bond purchasing that the ECB has outlined. Ms Lagarde has indicated she will seek to have those bonds intersect with the goals for emission reduction and the green bonds, which are another new focus for the ECB.

Our guests might also comment on the loans at low or zero-interest rates that are currently available. Is Ireland availing sufficiently of them to engage in the kind of structural transformation that has been indicated by both the International Monetary Fund, IMF, and the ECB as being required? It was stated that the post-pandemic world may not be the same world. What structural transformation will be needed and how will a K-shaped recovery be avoided? Our guests pointed out a stark differential in regard to the reduction in domestic demand. What role can the State play as an economic stimulator, not simply through business but directly as an economic actor? The fiscal rules at European level have, effectively, been suspended for the next two years. There is a combination of very low-interest loans and a suspension of some of the other fiscal constraints over the next two years. How can Ireland make the most of that window of opportunity? I ask our guests to give an initial response and to follow up with a more comprehensive written response.

Is there a timeline for when the international governance framework review will be taken up? What role does the Central Bank plan to play in the recovery and resilience strategy that Ireland will have to put in place to access the recovery and resilience framework funding?