Noonan heeds Central Bank warning to ease off austerity measures

Noonan heeds Central Bank warning to ease off austerity measures

The Finance Minister Michael Noonan has warned he will have to stick to a €5bn adjustment in the next two budgets.

It comes after the Central Bank urged the Coalition to resist the temptation to ease up on spending cuts and tax hikes by using the benefits of the promissory note deal.

The Central Bank's quarterly report warns of the need to stick to austerity, saying the Government should resist the temptation of easing off on the cuts and taxes.

Mr Noonan though will come under intense political pressure to soften the budget as much as possible, but he suggested there is little room for an easing of austerity:

The Minister said little discussion will happen now on the budget for the next month, but then there will be a fairly busy six weeks after the break.

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