Defending Government Spending: McGrath’s Perspective
Former finance minister Michael McGrath has defended the Government’s spending ahead of the upcoming budget, despite breaching the 5% spending growth limit set in 2021. McGrath cited unforeseen circumstances like the war in Ukraine and inflation spikes as reasons for the deviation from the rule.
In response to Irish Fiscal Advisory Council warnings and Central Bank recommendations to stick to the 5% limit, McGrath emphasized the need for a fiscal response to economic shocks. He expressed confidence in the current ministers to continue managing public finances effectively.
Aside from budget concerns, McGrath also shared his trust in Tánaiste Micheal Martin’s leadership decisions, including the pledge not to form a coalition with Sinn Féin. While dismissing rumors of his own leadership ambitions within Fianna Fáil, McGrath is focused on his new role as EU Justice Commissioner.
As McGrath transitions to the European Commission, he remains committed to party membership and active engagement within the political sphere.