• If economy stays on track deficit would come close to 3% by 2014
  • Real economy, rates of interest on borrowing have evolved in less favourable way
  • Govt committed to ensuring budget kept on convergent path
  • 2010 to see steep jump in Irish govt debt and sharp transient spike in borrowing
  • Govt decision on Anglo Irish Bank comes as welcome relief
  • Anglo Irish capital requirements will be less thn numbers “recently touted”