BRUSSELS (MNI) – Ireland’s two main opposition parties are
committed to the government’s aim to cut the country’s budget deficit to
below 3% by 2014, Irish finance ministers Brian Lenihan said late
Wednesday.
The costs of the bailing out the banking system will push Ireland’s
budget deficit to 32% of its GDP this year. The Irish government has
committed to getting the deficit below the EU’s 3% limit by 2014.
Stripping out the banks, the deficit is expected to be 11.9% this year,
still the largest in the Eurozone.
“I welcome the commitment of the leaders of Fine Gael and Labour
to achieving the target of a deficit of below 3% of GDP by 2014,”
Lenihan said in an emailed statement sent late Wednesday after a meeting
of the three main parties.
“This commitment agreed between the Government and the two main
opposition parties, sends out to the international markets an important
signal of our determination to restore order to the public finances,”
the finance minister continued.
Ireland’s government is implementing a strict austerity plan to
curb its deficit, which is well above the EU’s stipulated 3% limit. The
government says it is on track to meet this year’s target but will need
to make extra cuts in its budget plan for next year because growth
hasn’t been as strong as it had hoped, creating a gap that needs to be
filled.
Earlier this week an Irish national newspaper reported that
Ireland could need to make as much as E5 billion in additional budget
savings to meet next year’s budget target. Those cuts would come on top
of E7.5 billion already pencilled in for next year.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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