BRUSSELS (MNI) – Ireland’s government must stick to its commitment
to bring its budget deficit below 3% by 2014 and spell out a credible
fiscal path, ECB President Jean-Claude Trichet said on Thursday.
The costs of bailing out its banking system will push Ireland’s
budget deficit to 32% of its GDP this year. The government has committed
to getting the deficit below the EU’s 3% limit by 2014. Even stripping
out support for banks, the deficit is still around 11% this year — the
largest in the Eurozone.
“It is something that has been asked of Irish government, it is
extremely important that Irish government take decisions to permit … a
very credible path towards sustainable public finances,” Trichet told
reporters in Frankfurt.
“There are deadlines that have been mentioned,” he said. “Let me
say that we are considering absolutely important that this commitment
that has been taken is put into action.”
“On any measure, I will not comment. But the goal is absolutely
clear,” Trichet added.
Trichet was speaking at a press conference after the ECB held its
key rate at 1% for the 18th-straight month.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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