EU chief: No immediate breathing room for Ireland

THERE are signs that the great recession stalking the global economy has bottomed out but there will be no immediate breathing room for Ireland, the EU’s economy chief, Joaquin Almunia has said.

Next week Mr Almunia will initiate action against Ireland over its excessive budget deficit — estimated to reach 1% this year — and tell the Government what he expects them to do about the exploding public debt.

He has indicated he will give the country as long as it says it needs — possibly five years — to rein in the budget deficit to less than 3% of GDP.