Alice-Mary Higgins (Independent) | Oireachtas source

My final question for now relates to how we spend, which is an ideological point. I refer to the European Commission's policy discussion document on the fiscal rules, which was published in October. Dr. Ehnts questioned what the fiscal rules are based on. There are certain assumptions regarding the role of public investment or lack thereof. The Commission indicates public investment should not be made unless there is market failure, which is a very high bar to prove. Both private and public investment may have a role. From an economic perspective, however, are there times when public investment to bring about major changes, such as with the European Green Deal and on climate, can be more economically, socially and perhaps environmentally efficient, as well as more sustainable through long-term control in being able to continue to adapt as required to an evolving issue such as climate?

Public investment is constrained. There has been an obsession with things being done off balance sheet and there has been a dynamic whereby the state's role is to create an enabling environment for private investment. It strikes me, however, that there is a risk in leaving crucial building blocks of society to the private market, such as housing, where there is an inflationary trend that is completely out of kilter with inflation in wages, because we are building in a speculative vulnerability. Will Dr. Ehnts comment on that? Is this a period for front-loading public investment, which would in turn support more economic opportunity down the line?