National debt and interest payments
Sir, – The annual interest cost on the national debt is over €5 billion. There is one parameter that no one seems to be factoring in – the percentage interest rate that we are being charged for the debt. Currently the rate is at historically low levels, as internationally interest rates are very low. However, as is the cyclical norm, in the future these rates will increase and they could possibly double or treble. This would be a serious shock to our national budget. It won’t happen overnight but a material increase will definitely happen over time.
Unfortunately, as our politicians only think and plan days and weeks ahead, this is something that they won’t consider until it is too late. – Yours, etc,