Summer Economic Statement

Dáil Éireann Debate, Tuesday - 15 June 2021

Tuesday, 15 June 2021

Questions (374)

Gerald Nash

Question:

374. Deputy Ged Nash asked the Minister for Finance his views on the recently reported comments of the Chief Executive of the NTMA who stated that short to medium term environment for debt refinancing will be benign; his further views on the recent comments from the President of the European Central Bank that strong policy support will continue to provide a bridge over the pandemic and well into the economic recovery (details supplied); the status of his stated a proposed deficit reduction framework and a medium-term fiscal target in the forthcoming Summer Economic Statement in view of favourable borrowing conditions; and if he will make a statement on the matter. [31614/21]

Written answers

Minister for Finance

I note the recently reported comments by the National Treasury Management Agency (NTMA) Chief Executive which the Deputy refers to.

I am also well aware of the support provided by the European Central Bank (ECB) during this pandemic. The length of time such extraordinary monetary policy measures will be needed is a matter entirely for the ECB. The support provided by the ECB during the pandemic has allowed Governments across Europe to utilise public sector balance sheets to compensate for the dramatic reduction in personal and corporate incomes. The level of support provided has been unprecedented and entirely appropriate given the circumstances. While considerable uncertainty remains, particularly in relation to new variants, we can be hopeful that the worst of the pandemic has passed.

Given these circumstances the Government announced the extension and gradual unwinding of temporary pandemic supports in the Economic Recovery Plan, published on 1st June. The cost of the extensions and other measures announced in the Plan will be integrated into revised high-level deficit projections to be published in the Summer Economic Statement (SES). The SES will also set-out a budgetary framework within which Budget 2022 can be delivered and will be published in the coming weeks.