Taoiseach-elect Leo Varadkar is turning his back on Michael Noonan’s €1 billion per year rainy day fund to spend more on infrastructure.

The fund was announced by the Minister for Finance in last year’s budget to help withstand any Brexit downturn. It has been strongly supported by the International Monetary Fund and the Fiscal Advisory Council.

But Varadkar believes it does not make sense to salt away €2.5 billion in a...