Mr. Robert Watt:

The deficit was a function of the crash. The fiscal deficit opened up when the economy collapsed back then. It was a big task to get that back into balance.

Our focus with the Minister at all times is to look at the sustainability of expenditure, of the budget, and to work with the Minister on what the appropriate increase in spending is, given the other demands. There is the whole question of the sustainability of the public finances, to debt and the pensions issue. On pensions, there is a big contingent liability out there, which is greater than the gross debt, which is something we are very focused on. Many changes have been made, for example on public pensions with the single pension scheme of 2012, and changes on social welfare pensions in increasing the retirement age. There are issues about the sustainability of the pension system, which is a big issue for society. There are wider issues on the cost of healthcare, particularly nursing home care, and how that cost is to be met in the future. The demographic impacts on the public finances are significant. Every year it costs €450 million to €500 million just to deal with the demographic consequences on pensions and health systems.