Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Austerity in Ireland ended more than 12 months ago.

The most recent budget imposed no new expenditure cuts or no new taxes, and a significant amount of tax relief was given in the budget, both in terms of reductions in universal social charge and in income tax. Deputy Paul Murphy can keep singing the same song, but it is the hit parade of last year or two years ago. There is no austerity programme in Ireland now. The budget was mildly expansionary and that will be reinforced by reductions in energy prices and by the quantitative easing proposals from the European Central Bank. There will be quite significant stimulus in demand coming through. Anybody one talks to will tell one it is there already on the January pay cheques.

The reason Greece's fundamental statistics, as Deputy Paul Murphy describes them, are lower than Ireland's is that in my time in the Eurogroup three separate deals have been done for Greece. The reason they are paying less interest is they are on an interest moratorium and on their official debt, they are not paying interest until 2023. It also means there is little scope to cut another deal. There is little headroom left, but there is some. The European colleagues have done a lot for Greece, but the Greek position was dire and its economy is a weak economy. I do not want to get into any detail because it is not for me to criticise the present management and the previous management of the Greece economy, but there are difficulties. There are historic difficulties in Greece as well of which the Deputy will be aware.

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