The Chief Economist of the European Central Bank, Philip Lane, has said any incoming government here must adopt a prudent approach to managing any future fall off in Ireland's corporation tax receipts. 

In an interview with RTÉ News, the former TCD economics professor and Governor of the Central Bank, also explained his opposition to any role for the Central Bank of Ireland in capping or controlling interest rates charged by banks. 

He also defended the current ECB policy of negative interest rates and quantitative easing. He said if the ECB did not pursue these policies, "...the medium term scenario would be worse..."

He said we are "...still in the legacy of the crisis..." but added that European economies that could do more in terms of spending should do more. 

He recognised that current ECB policy is having an impact on the property market across Europe and that this would form part of the current review into the bank's policies. 

He said the ECB's only focus is the euro-area economy but added that anything that was good for the wider euro area is good for Ireland. 

On Brexit, he said the quicker a trade deal is done the better. However, he also stated that "...the UK is not big enough to be the driving force for the future of the euro area."

He said the role of ECB Chief Economist is a "...tremendous personal challenge...".