Central Bank Governor Gabriel Makhlouf has said he is sceptical about tax reductions as part of the July stimulus package to help businesses.
Mr Makhlouf said whatever way the Government designs the stimulus package, it has to be focused on protecting the productive capacity of the economy.
Speaking on RTÉ's This Week he said while there are not necessarily sectors that don't deserve support, whatever measures are put in place should be as flexible as possible, and will enable businesses to manage the current crisis.
He said he is sceptical about the reduction of VAT as a measure to provide support from government as has happened in the UK. "I think most measures need to be targeted and temporary.