What would you do if huge extra billions suddenly appeared in your state budget? For the government in Ireland of five million, this is not only a question of several billions, but also something that can potentially lead the country into economic problems from which they have only relatively recently dug themselves out.
At first glance, the budget revenue surplus looks like a blessing. What would Slovakia do for an “anti-deficit” in the amount of 10 billion euros (that much is estimated for this year in the case of Ireland), which this year is threatened with a budget deficit of almost 7 percent in relation to GDP.
Well, it’s not as simple as it might seem. The government in Dublin cannot afford to pour so much money into the economy, and especially not like this all at once. It could cause more harm than good, for example, speed up inflation or increase the price of already expensive housing, which in Ireland is one of the most expensive in the entire European Union.
The second problem