Citigroup warns giveaway budget could be start of another bubble

Bank’s Europe expert say refusal to burn bondholders was ‘only reasonable call’

27th September, 2015

US banking giant Citigroup has urged the government to keep a tight rein on fiscal policy ahead of the budget to avoid repeating the mistakes of the past.

Michael Saunders, head of European economics at the bank’s London office, told The Sunday Business Post that the Irish economy is “in terrific shape”, but warned that political leaders could be tempted into allowing another bubble to form.

“As the money rolls in,...

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