Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I will take that question. If by referring to a short sharp movement the Deputy means a very rapid withdrawal of the measures we have in place and trying to move from having a deficit to being in balance in a very short period, that is not what we are envisaging. It will take time for our economy and society to recover. A withdrawal too quickly of the measures we have in place could be counterproductive. What I and, I believe, the Minister, Deputy McGrath, are anticipating is that over time we would be able to rebuild our national finances as our public health allows us and as we are successful in getting more of our fellow citizens back to work.

In terms of the Stability and Growth Pact, there will be fiscal rules. A debate will begin during this year on the future of fiscal rules, but it is worth noting the fiscal rules have the general escape clause that was triggered which allowed for the measures that are in place in 2021. The fiscal rules are in some way showing their worth in that, when this pandemic hit Ireland and Europe generally, national finances for the vast majority of countries within Europe were in a position of having a very small deficit, being in balance or having a surplus. That, in turn, combined with the work of the European Central Bank, has been vital in allowing us to do what we are doing at the moment.

Therefore, fiscal rules play a really important role. They will be needed. A debate on this issue will be developing soon, but the rules allow the flexibility currently being used in 2021.