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Tánaiste Leo Varadkar has said that Ireland may be close to the level “where we can live with the virus”.
He said the overriding imperative at this point is to keep the virus suppressed to avoid a second lockdown “if possible.”
The Tánaiste made his remarks at the Dublin Economics Workshop this afternoon.
He said that he did not believe that the impact of the coronavirus on the economy could be summed up in “the one-hit hypothesis”, such as a V-shaped or K-shaped recovery, as he believes there will be “multiple hits” and was more similar . to an ongoing war.
The Fine Gael leader added that people should not assume that it will be another 100 years before the next pandemic hits, and that he believes things will never be the same again.
He said one of the government’s most important goals was to maintain social solidarity, particularly with people in industries such as entertainment, conferences and aviation, which have been hardest hit by the pandemic.
Varadkar said the next budget should focus on those industries.
The Tánaiste also said it would like to see a permanent wage subsidy scheme created as part of a strengthened social security system.
This would be more like the social security systems in Europe and would also include better sickness benefits.
He said this should be paid for with higher rates from PRSI. Mr. Varadkat told the online audience that this was “hinted at” in the Government Program, so he was “not missing the point.”
Read more: Latest coronavirus stories
Mr. Varadkar also said that he was looking forward to implementing a “living wage” during the life of this Government.
Regarding insurance costs, the Tánaiste admitted that “… the last government did not get the insurance right.”
He said he was now chairman of a cabinet committee created to deal with insurance costs, which he hoped would “make a real difference” and “take the bullet” by passing new legislation to address the issue.
The conference was also attended by the ECB’s chief economist, Philip Lane, and Professor Frances Ruane, president of the National Council for Competitiveness.
Philip Lane described the rebound in the eurozone economies this summer as “a mechanical rebound” and that the recovery is far from complete.
He described a “massive degree of nervousness” among households over spending, reflected in much higher-than-normal savings rates.
Professor Ruane pointed to five long-standing issues where Irish costs have long been misplaced.
They are insurance costs, credit, legal costs, housing costs and childcare costs, he said.
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