Mr. John McCarthy:

That is a very relevant question. I can set out the trajectory in pure money amounts. Last year the figure was €204 billion. For 2020, we estimate €219 billion by the end of the year. For next year, we are looking at a debt of €239 billion. My view is that the State can absorb the one-off increase in the level of public indebtedness. What really matters is the trajectory of the debt to income ratio, in other words, debt to GDP or debt to GNI*. In spring, the Government will set out the stability programme and a medium-term trajectory to get that debt ratio on a downward path. Most economists take the view that economic growth can do the bulk of the heavy lifting. In other words, even if the nominal amount has increased to almost €240 billion, the growth rate in GDP will reduce the ratio over time. Forgive me for going on. Deputy Colm Burke also made a point about the burden of servicing the debt. It is important that monetary policy has reacted on this occasion. In recent years we have seen interest rates fall, not only at the short end of the curve - in other words the policy rate - but also at the longer end of the curve, as the European Central Bank has stepped in via quantitative easing and what is now called the pandemic emergency purchase programme. It is hovering up a great deal of Euro area sovereign debt. It is keeping long-term borrowing costs down. For instance, the Irish sovereign can borrow ten-year money at approximately 0% at the moment. That does not mean it will always be the case. The one thing we do know is that is a non-equilibrium position. Interest rates will rise. It is a question of when. The key point I wish to make is that Euro area sovereigns can carry a higher burden of debt because of the lower interest rate environment.