Market comment - New Irish government to set out July stimulus package

Davy Research
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Investors will welcome the news that an Irish government has been formed, providing continuity and stability. Next on the agenda will be the ‘July stimulus’ promised in the Programme for Government. This will involve legislation for the €2bn Credit Guarantee Scheme and supports for hard-hit sectors such as retail and tourism. An expansion of the Help-to-Buy scheme is also promised. However, it isn’t clear that October’s Budget will loosen the fiscal policy beyond the very accommodative stance already set out in April.