Ireland Boosts Budget Spending as Brexit Looms
Ireland's finance minister boosted budget day spending for the second year in a row as the government warned of economic "carnage" if neighboring Britain crashes out of the European Union without a divorce deal. Having already pre-committed 2.6 billion euros ($2.99 billion) on increased public sector and planned infrastructure spending for next year, Paschal Donohoe, in Tuesday's annual budget speech, almost doubled the remaining pot to 1.5 billion euros to dish out on further tax cuts and spending increases. The state's fiscal watchdog warned ahead of the budget that the booming economy did not need such additional stimulus. But with an election potentially looming and the fast-growing economy exacerbating deficits in areas such as housing, a scrapping of a reduced VAT rate for the hospitality sector mostly funded the extra…