DUBLIN: EU fiscal rules are hampering vital investment in Ireland, says the organisation representing Irish businesses, Ibec.
In it’s latest economic outlook, the group said the government should seek flexibility on EU fiscal rules for Ireland ahead of the next budget in October.
The EU’s fiscal policy rules set numerical targets for budgets, placing a permanent constraint on fiscal policy, impacting on a government’s budget balance, debt and expenditure.
Ibec said while their assessment is “upbeat” there needs to be a significant ramp up in investment expenditure.
It said massive spending cut-backs during the crisis years meant that Ireland was playing catch-up across many aspects.
Ibec said the current EU rules placed inappropriate and unnecessary restrictions on investment, and while Ireland needs to spend sensibly, it also need to invest ambitiously in areas such as transport, education and broadband.
