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Central Bank tells Government: Don't cut back on austerity

The government's being told not to hold back in October's Budget. The Central Bank's latest update o...
TodayFM
TodayFM

1:51 PM - 26 Jul 2013



Central Bank tells Government:...

News

Central Bank tells Government: Don't cut back on austerity

TodayFM
TodayFM

1:51 PM - 26 Jul 2013



The government's being told not to hold back in October's Budget.

The Central Bank's latest update on Ireland's economic performance says the economy will grow a lot less than first expected.

It's blaming the problems in mainland Europe, saying the economy will only grow by 0.7 per cent this year.

All that means it'll now be more difficult to reach the EU's targets for the budget deficit.

Some had been hoping that Ireland could reach next year's targets without implementing the full €3.1 billion of cuts planned for the next Budget.

But the Central Bank says Ireland has built up a reputation of always delivering on its targets - and it could find it more difficult to escape the bailout if it changes tack now.

It's bad news for some in government, who had been hoping the next Budget could go a little softer as it becomes harder and harder to find more savings.

Already one minister, Pat Rabbitte, has played down the suggestions:

Whether the government will take the Central Bank's advice remains to be seen - but it's certain that the decisions about Ireland's financial future remain as difficult as ever.



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