IMF: Ireland should press ahead with €3.1bn Budget cuts

IMF: Ireland should press ahead with €3.1bn Budget cuts

The International Monetary Fund said Ireland should stick to the terms of the bailout agreement and cut €3.1bn from the Budget in October.

The IMF said it was not its job to dictate the terms of the Budget, but said that Ireland needed to continue its track record of fiscal consolidation.

That meant going ahead with the planned tax increases and spending cuts.

The IMF was speaking as the international lenders to Ireland gave the green-light on their latest review of the bailout agreement.

It also urged the Government to accept assistance from the organisation when the bailout ends later this year.

Minister for Finance Michael Noonan said that there is no scope for easing up on austerity in October's Budget as a result of the deal on the Anglo promissory note and the EU portion of our bailout.

The two separate agreements mean Ireland will have to borrow €40bn less over the next decade.

Michael Noonan said that Ireland's deficit remains the same and we have committed to certain reduction targets.

He says the two agreements will have an impact on future Budgets - but only in the long term.

More on this topic

Ming: At least Greece are asking for debt measuresMing: At least Greece are asking for debt measures

Noonan talks tough as he demands ECB attends banking inquiryNoonan talks tough as he demands ECB attends banking inquiry

Draghi: Ireland's bailout decision 'not that stupid'Draghi: Ireland's bailout decision 'not that stupid'

FF: Trichet letters show Government was left with no choiceFF: Trichet letters show Government was left with no choice

More in this Section

Ireland faces second mortgage arrears crisis when payment breaks end this autumn, leading financial advisers warnIreland faces second mortgage arrears crisis when payment breaks end this autumn, leading financial advisers warn

EU's Michel proposes €5bn Brexit emergency fund that may help IrelandEU's Michel proposes €5bn Brexit emergency fund that may help Ireland

Pressure builds on Donohoe after UK cut Vat to boost pubs and restaurants in Covid-19 stormPressure builds on Donohoe after UK cut Vat to boost pubs and restaurants in Covid-19 storm

Britain heads for sharpest economic slump of major economies in Covid-19 stormBritain heads for sharpest economic slump of major economies in Covid-19 storm


Lifestyle

Naomi Campbell model tells Michael Odell why she’s inspired by Black Lives Matter and the young people taking action against racial injusticeModel behaviour - Naomi Campbell at 50

Eve Kelliher explores temples of Zoom to get verdict on relocation from boardroom to spare roomWhat we've learned from world's biggest remote working experiment

As those of us who love to have friends round are tentatively sending out invitations, we’re also trying to find a workable balance with necessary social distancing rules, writes Carol O’CallaghanTable manners: How to entertain at home post-lockdown

Helen O’Callaghan says asthma sufferers need to watch pollen levelsBreathe easy: Pollen tracker protects asthma sufferers

More From The Irish Examiner