Watchdog: 2017 budget breaks EU rule

Michael Noonan’s 2017 budget is already on course to break EU rules even before any breaches in the Lansdowne Road public pay agreement are accounted for, the country’s fiscal watchdog has said.

In its assessment of the spending increases and tax cuts Mr Noonan unveiled last month, the Irish Fiscal Advisory Council (IFAC) said the proposed budget items mean the State will likely spend €200m more than is justified under the oversight Brussels has over national budgets.

It warned also there was little remaining buffer for spending increases next year and in the coming years, should the economy be hit by any economic blow.