“The jury is out” on whether Ireland would fall into an economic recession as a result of Ukraine Taoiseach warned.
Michael Martin said there would be a “price” to pay for war but current projections suggest the country should not go into recession this year.
“They appreciate it very much, but there will be a price to pay for this fight,” he said.
“No one can be sure what will happen throughout 2022 for the economic situation.
“We are doing very well, the projections are still Ireland will grow and won’t be in recession, those are the projections, but this could play out in a number of different ways and we can’t be certain of that. any of those things.”
Mr Martin said ECB President Christine Lagarde had briefed EU ministers on how inflation would continue to rise, and that monetary policies that would have been in place before the war would also be tighter.
He said the conversation at the EU level is now whether a Europe-wide fiscal stimulus measure, introduced during the start of the pandemic, is needed to avoid a recession.
He said Ireland would favor “more flexibility” with respect to VAT, excise and energy directives, which would provide “more options for targeting measures”.
“I can never promise anyone about the business cycle,” he said.
However, Mr. Martin refused to be pressed about the true cost of Putin’s war with Ukraine, saying that 40 million euros worth of humanitarian aid had been allocated.
However, the true costs are likely to be much higher as the State begins to build more housing and other infrastructure, such as more teachers in school classrooms, for tens of thousands of dollars. Refugees.
Mr. Martin said additional resources will be provided for interpreting and childcare services.
“Obviously it was a wartime situation,” he said.
https://www.independent.ie/irish-news/politics/jury-is-out-on-whether-ireland-will-be-plunged-into-economic-recession-as-result-of-ukraine-war-warns-taoiseach-41454951.html Taoiseach warns ‘Jury’ whether Ireland will fall into economic recession due to Ukraine war