Varadkar: Covid economic recovery "akin to a war" as Donohoe chairs first Eurogroup meeting

Varadkar: Covid economic recovery

The Minister for Finance Paschal Donohoe has said he is confident there will be a strong recovery from the financial implications of Covid-19.

His optimism comes despite warnings that GDP will not return to pre-Covid levels until 2022.

This morning, Mr Donohoe chaired his first in-person meeting of the influential Eurogroup in Berlin.

Following the meeting, he said a recovery will be difficult, but can be achieved.

"There will be no sudden stop, no policy cliff-edge and overall budgetary policy will continue to support the economy.

"This consensus gives me confidence that we can build an inclusive and strong recovery."

Meanwhile the Tánaiste Leo Varadkar has compared the economic impact of the virus to being like fighting a war, with multiple waves on the way.

Speaking on a Zoom conference this afternoon, Mr Varadkar said the best economic strategy is a health focused one - saying businesses will not do well if their customers are dead.

He said Ireland will borrow heavily to fund public spending but warned the bill will come due and the Government is still figuring out how best to deal with the economic cost of Covid-19.

"This is a recession like we haven't seen in our lifetimes, probably hasn't happened in a century.

"We can look at previous banking crises, but it's very hard to see a comparator for this. I think if there is, it's something more akin to a war or an invasion."