Donohoe says any easing of EU borrowing limits will be ‘challenging’

European borrowing limits could potentially be eased due to member states running up large debts during the Covid-19 pandemic

Paschal Donohoe, Minister for Finance: Ireland’s debt-to-GDP ratio remained just below 59 per cent at the end of 2020, but much of that is due to Ireland’s exceptionally high GDP numbers, driven by multinational activity. Picture: Getty

Any reform of European Union fiscal rules will be “challenging”, but starting the debate is “welcome”, Paschal Donohoe has said.

The Minister for Finance and current president of the Eurogroup was responding to the potential easing of European borrowing limits, in light of much larger debts accumulated by member states during the pandemic.

A new paper published last week by economists at the European Stability Mechanism (ESM), the EU’s bailout fund formed in the wake ...