Economist: Budget hints are 'political posturing'

Economist: Budget hints are 'political posturing'

Government indications that Budget 2011 will be more severe than expected are partly "political posturing" according to one leading economist.

Finance and banking takes centre stage at day two of the Fianna Fáil annual think-in in Galway today.

Yesterday, the Finance Minister reiterated the importance of reining in our massive exchequer deficit and said that deeper cuts may be required than the €3bn originally suggested.

His comments came against the backdrop of negative international commentary about the country's financial standing.

Chief Economist with Friends First, Jim Power, has questioned Brian Lenihan's strategy.

"I think we are getting political posturing here," Mr Power said.

"If Brian Lenihan and the Government build people up to expect more than €3bn (in cuts), and deliver €3bn on the day, well then it's a positive sigh of relief amongst people.

"I wouldn't take anything as given at this stage."

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