–Says Credible Measures Will Avoid Request For External Aid
BRUSSELS (MNI) – Ireland is planning additional measures to cut
its budget deficit and understands what is expected of it, European
Central Bank Vice President Vitor Constancio said on Friday.
Ireland’s government is planning to set out a four-year budget plan
in November where it will outline how it intends to bring its budget
deficit below 3% by 2014, which European Central Bank President
Jean-Claude Trichet has said is “key” from the ECB’s perspective.
The cost of bailing out Ireland’s banking system will push the
country’s budget deficit to 32% of its GDP this year. Excluding the
once-off bank costs, the Irish deficit is still expected to be above 11%
this year, the highest in the Eurozone. The Irish government has
committed to slashing the deficit below the EU’s 3% limit by 2014.
“Of course the Irish government is aware what is expected of it,”
Constancio told reporters after the meeting here in Brussels.
Asked if Ireland should front-load its measures, Constancio said
“it is for the Irish government to decide on that,” but he added that
all countries should be “upfront” with their measures.
He reiterated Trichet’s view that the idea of a four-year Irish
plan with extra measures had been well received at the ECB.
Asked if Ireland might have to get external help to finance its
budget deficit — for example, from the Eurozone E440 billion stability
facility and the International Monetary Fund — Constancio said he
thought Ireland would make “credible adjustments” that will avoid it.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
[TOPICS: MT$$$$,M$$FX$,M$$EC$,M$X$$$,M$$CR$,MGX$$$]
