Dr. Thomas Conefrey:

The short answer is "Yes". A big issue in Ireland's budgetary process over many years has been the focus on the shorter term or year to year. Even now, there is a large focus on the budget for one year in the future, at the expense of thinking longer term and factoring in the pressures we can anticipate. Such things as ageing are happening relatively slowly. We have a reasonable handle on what size the older age population will be in ten years' time so we can anticipate. We need to broaden the focus of budgetary policy beyond the next year and make sure whatever is decided in the budget for 12 months' time is also consistent with ensuring the public finances are sustainable beyond that. One of the positive features of the reformed rules at EU level is a much greater focus on the medium term, the implication being the need to submit the medium-term fiscal structural plan. That is a recognition of the importance of the longer term perspective.