National debt hit €206bn last year
Fresh concerns have been raised over the economic impact of a no-deal Brexit, after it emerged that Ireland’s national debt is now so high that every person in this country owes €42,500.
The Department of Finance confirmed the situation amid reports that the North may be forced to cull thousands of cows in a worst-case Brexit and as British prime minister Boris Johnson continues a stand-off with the EU.
In a statement following the publication of the annual report on public debt 83 days before the October 31 Brexit deadline, Finance Minister Paschal Donohoe said Ireland’s national debt last year was €206bn.
The rate, which is €5bn higher than in 2017, is the equivalent of a €42,500 debt for every person in this country, meaning Ireland now has one of the highest per capita public debt levels in the OECD.
“An important milestone was reached last year when a budget surplus was recorded for the first time since 2007,” said Mr Donohoe.
However, public indebtedness remains too high. It is crucial that we build on the solid progress made in recent years and run budget surpluses to prevent the build-up of additional debt.
The €42,500 individual debt level is €31,811 higher than in 2005 — the year considered to be the height of the Celtic Tiger period before the economic crash.
The latest annual report on public debt is the third time the document — which aims to provide a clear analysis of public debt levels — has been published.
The findings came amid fresh concern over the economic threat of a no-deal Brexit, with BBC Northern Ireland reporting that farmers in the province may be forced to cull 40,000 cows in a worst-case scenario — impacting the cross-border economy.
Mr Donohoe separately told RTÉ radio’s programme that the Government will have to “make a call” on a no-deal Brexit budget for October. Mr Donohoe said that while he still believes a no-deal Brexit is “avoidable”, the reality is that the Government must prepare to protect the country from a financial crisis if a worst-case scenario Brexit hits.
“In that scenario [a no-deal Brexit budget], Government will make a call and explain the rationale,” said Mr Donohoe.
I don’t want to be in a situation where our economy has to deal with the consequences of a no-deal Brexit.
Meanwhile, Fine Gael senator Neale Richmond urged people to be careful of pushing for a border poll, saying there is no guarantee the vote will pass.
