Oireachtas Joint and Select Committees
Wednesday, 15 October 2025
Joint Oireachtas Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation, and Taoiseach
Scrutiny of EU Legislative Proposals
2:00 am
Mr. Matthew McGann:
I am not sure we will be able to deal with the detail of the expenditure with our colleagues here today. The Department of public expenditure manages the detail of the various expenditure lines. To the Deputy's first question about why Ireland did not apply for use of the SAFE borrowing capacity, we considered it in conjunction with our colleagues from the Department of Defence and the Department of public expenditure. Ultimately, we did not see that there was a financial case for it for two reasons. First, at the moment, Ireland borrows more cheaply than the Commission. It is an on-lending facility so the Commission borrows on capital markets and then lends to member states. In particular for high-debt member states that access funding at a higher level, it means they can access funding more cheaply and it supports their additional spending. We are in the fortunate position of having a relatively low level of borrowing costs on the market. Our costs can vary at different times but over the last six months we have been borrowing at about 2.9%, and the Commission at 3.2%. Even more significant than that is the fact that we run a surplus at the moment. If there is additional spending needed, there is not a financial case to borrow to fund that additional spending when we have a surplus.
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