Budget, bailout double blow for Coalition

The Coalition has been hit with two blows following the Irish Fiscal Advisory Council’s recommendation that the Government sticks to €2bn in budget cuts next October, and a senior EU official saying that there was "no chance" of a deal on Ireland’s bank debt.

The developments will heap further pressure on a Government dogged by a spate of controversies including the banking inquiry, and still reeling from heavy local and European election losses.

In IFAC’s latest fiscal assessment report, chairman John McHale said: “It is important that the Government follows through on its commitments to implement the €2bn of additional measures in 2015.”