EC critical of capital spending

[ThomasJ]

Telling us what we already know

The European Commission's annual country report on Ireland warns that the Government's capital spending programme is inadequate for the country's needs.

The Commission has said that over the next three years in particular, capital spending will be underfunded because the Government has chosen to prioritise tax cuts and current spending increases over investment.

This report is critical of the Government for prioritising tax cuts over investment spending, particularly in education, public transport, energy and water infrastructure.

It says seven years of sharply reduced spending has taken a toll on the quality and adequacy of infrastructure.

The report also says the new capital programme for the next government term will, even at its maximum point, leave spending one third lower than what it calls the already depressed EU average.

This, it warns, could negatively affect the country's growth prospects and the delivery of key public services.


It says a key weakness for the country is public transport in the car-dependent Dublin region.

The city is now ranked the ninth most congested of 200 cities worldwide at peak times - worse than Los Angeles, Beijing and Rio de Janeiro.

More here

http://www.rte.ie/news/business/2016...ission-report/